Assessing Thursday’s inflation report from the United States (US), “September Core Consumer Price Index (CPI) inflation came in below expectations at 0.1% mom (ABN/consensus: 0.2%), while the annual measure was in line at 2.4% yoy (the difference due to rounding),” noted ABN AMRO senior economist Bill Diviney. “The downside surprise was driven by bigger payback in core goods inflation than we had factored into our forecast, with used cars and apparel registering declines on the month. More importantly for the outlook, core services inflation (excluding shelter, transportation and medical) has continued to soften, with annual inflation falling to 1.6% yoy – the weakest since March 2018.”“Services is where you would expect to see the effects of a tight labour market and higher wage growth, but there is still little sign that businesses are passing on higher unit labour cost growth. With the labour market now weakening (albeit modestly), and wage growth looking to have peaked for the time being, the prospects for a meaningful pickup in inflation continue to dim.”“While not the driver of rate cuts for most on the FOMC, muted inflation is certainly an enabler of easier policy. As such, the continued softness supports our expectation of further Fed rate cuts in October and December.” Forex Crunch is a site all about the foreign exchange market, which consists of news, opinions, daily and weekly forex analysis, technical analysis, tutorials, basics of the forex market, forex software posts, insights about the forex industry and whatever is related to Forex.Foreign exchange (Forex) trading carries a high level of risk and may not be suitable for all investors. The risk grows as the leverage is higher. Investment objectives, risk appetite and the trader’s level of experience should be carefully weighed before entering the Forex market. There is always a possibility of losing some or all of your initial investment / deposit, so you should not invest money which you cannot afford to lose. The high risk that is involved with currency trading must be known to you. Please ask for advice from an independent financial advisor before entering this market. Any comments made on Forex Crunch or on other sites that have received permission to republish the content originating on Stock Global forex broker Forex Crunch reflect the opinions of the individual authors and do not necessarily represent the opinions of any of Forex Crunch’s authorized authors. Forex Crunch has not verified the accuracy or basis-in-fact of any claim or statement made by any independent author: Omissions and errors may occur. Any news, analysis, opinion, price quote or any other information contained on Forex Crunch and permitted re-published content should be taken as general market commentary. This is by no means investment advice. Forex Crunch will not accept liability for any damage, loss, including without limitation to, any profit or loss, which may either arise directly or indirectly from use of such information. .