Meanwhile, consumer sentiment softened as the Michigan Consumer Sentiment Index unexpectedly declined. The data bolstered investor hopes for a 25-basis point November Fed rate cut. However, the modest decline aligned with expectations for a soft US economic landing.
Inflation Insights from Experts
AMP Head of Investment Strategy and Chief Economist Shane Oliver commented on the US inflation figures, stating,
“US Sept producer price inflation was benign at 0%mom/1.8%yoy with core at 0.2%mom/2.8%yoy. Together with the CPI it points to Sept core PCE inflation around 0.23%mom/2.6%yoy (down from 2.7%yoy in Aug) which would likely leave the Fed on track for -0.25% in Nov.”
China Stimulus News and Inflation Data in Focus
On Saturday, October 12, China’s Ministry of Finance announced fresh fiscal stimulus measures. However, economists noted the measures lacked sufficient focus on boosting consumer spending and demand.
Economic data from China on October 13 highlighted the need for stimulus measures to boost demand. Producer prices fell by 2.8% year-on-year in September, following a 1.8% decline in August. The sharp fall in producer prices signaled weak demand, raising concerns about whether China can achieve its 5% growth target for 2024.