SURGING RENTS LIFT US CONSUMER PRICES

U.S. consumer prices increased in September amid a surprise surge in rental costs, but a steady moderation in underlying inflation pressures supported financial market expectations that the Federal Reserve would not raise interest rates next month.

Economists expected the jump in rents, which was at odds with the rising supply of multi-family housing and independent surveys showing asking rents declining, to reverse in the coming months. With the labor market still tight, however, reaching the Fed's 2% inflation target could be a long slog, making it likely that the U.S. central bank could keep rates elevated for longer.

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