Inflation Jumps Higher Than Expected, Stoking Investor Fears on Fed Rate Hikes

U.S. inflation rose higher than expected in September, causing concern among investors about the Fed's interest rate plans.

Economists are split on whether the Fed will raise rates in November or wait until December. Views vary on how much more the Fed needs to combat inflation.

Markets reacted to the CPI report with the dollar rallying and stocks slightly down. Energy and tech sectors outperformed while utilities and consumer staples lagged.

The higher CPI figure doesn't necessarily motivate immediate Fed action at the November meeting, as inflation moves closer to the 2% target.

Investors should watch oil prices and shelter costs like OER for clues on Fed rate hike plans for the rest of 2022.