DAVY VIEW

US consumer prices grew by less than expected in September, the much-anticipated data showed this afternoon. A widespread expectation was already for a cut to the Federal Funds Rate in next week’s meeting, and today’s result suggests very little by way of dissent is to be expected. For goods, food price increases slowed whereas energy prices accelerated. Services inflation was also slower than in August. Our bespoke measure of inflation for items judged to have a higher exposure to tariffs also slowed.