U.S. CPI report: Inflation eases more than expected in September

Key points: Against a backdrop of a tighter labor market and tariffs on imports, inflation remains soft in the U.S. with c onsumer prices increasing less than expected in September : +0. 1 % M/M for total CPI (versus 0. 2 % expected) and +0.1% for core CPI (versus 0.2% expected) . As a result, i nflation decelerated from 2. 7 % to 2. 3 % and core inflation remained stable at 2.2%. Overall , today’s numbers indicate that inflationary pressures are contained which should ease fear s that the Fed will overtighten. Looking forward and despite obvious upward risks (additi onal tariffs coming) we expect inflation to remain relatively stable in the medium term .