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Supercore inflation, which measures core services excluding housing, rose 0.4% in September on a monthly basis. Colby Smith reported that this was the second consecutive month of elevated figures.
Over the past three months, supercore inflation has been running at an annual rate of nearly 4.6%.
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In earlier coverage, Colby Smith reported that Federal Reserve officials attributed the September rate hike to risk management and economic factors (link). Smith also noted that Dallas Fed’s Lorie Logan connected rising long-term yields to stronger growth expectations, a higher neutral rate, and increased term premiums (link). These updates provide context to the recent movement in supercore inflation.