US price inflation falls short in September

US Consumer price inflation for September came in weaker than expected at 0.5% with core inflation rising 0.1%. The headline figure was largely driven by a surge in gasoline prices during the hurricane period. US government debt rallied off the news with yields coming down on the longer dated debt maturities. The FED have, however, intimated over the year that the slow rise in inflation is more down to temporary factors over anything more systemic within the economy and the same is true with the September print. This central bank sentiment along with robust US growth numbers have seen investors continuing to price in a large probability that the FED will raise interest rates in December.