Inflation Holds Steady in September While Prices Rise for Housing and Food

Inflation remained steady in September at 3.7% annually, matching August's reading and showing continued bumpiness in the inflation slowdown.

Price increases were driven by housing, food, and energy costs, while used cars and apparel fell. Monthly price growth picked up from August.

Markets had little reaction to the report, though investors slightly increased bets on another Fed rate hike this year. The 10-year Treasury yield rose to around 4.6%.

Social Security benefits will increase 3.2% in 2024, less than 2022's big bump but more than the 20-year average. Medicare premiums may eat into the raise.

Companies like Disney, Pepsi and Chipotle say they still plan to raise prices, though some note consumer pullback. Investors think the Fed may be done hiking rates this year.