“The index for shelter was the largest contributor to the monthly all items increase, accounting for over half of the increase,” the report said. "Several participants commented that, with the policy rate likely at or near its peak, the focus of monetary policy decisions and communications should shift from how high to raise the policy rate to how long to hold the policy rate at restrictive levels." "All participants agreed that policy should remain restrictive for some time until the Committee is confident that inflation is moving down sustainably toward its objective," the minutes said. However, the central bank said it remains focused on bringing inflation down to its 2% target. The latest inflation numbers come a day after the Federal Reserve acknowledged growing downside risks for the economy in the minutes of the September monetary policy meeting. So far, market expectations for a rate hike are extremely low, at around 5.5%. In the last 12 months, core inflation rose 4.1%, the report said this was also in line with consensus forecasts.Īlthough the gold appears to be taking the latest inflation data in stride, there are growing risks that persistently elevated inflation could force the Federal Reserve to raise interest rates when it meets next month. The report said that core inflation rose 0.3% in September, following August's increase of 0.3%. December gold futures last traded at $1,893.30 an ounce, up 0.32% on the day.Īlthough headline inflation came in hotter than expected, core consumer prices, which strips out volatile food and energy, rose in line with expectations. The gold market is not seeing any major reaction to the latest inflation data however, the report appears to have slowed its bullish momentum. Annual inflation is also slightly hotter than expected, as consensus forecasts looked for a 3.6% increase. The report said inflation in the last 12 months rose 3.7%, unchanged from August's reading. The data came in hotter than expected, as economists were forecasting a 0.3% increase. Labor Department said its much-anticipated Consumer Price Index rose 0.4% last month, following a 0.6% rise in August. ( Kitco News) - The gold market continues to hold solid gains after hitting a two-week high overnight however, according to some analysts, the precious metal could face some near-term challenges as inflation remains stubbornly elevated. Receive a comprehensive recap of the day's top stories directly to your inbox. Get all the essential market news and expert opinions in one place with our daily newsletter.
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