New Delhi. Inflation pressure now seems to be increasing in America also. The US inflation rate increased more than expected to 3.7 percent in September, whereas it was 3.4 percent in August. According to the data released on Wednesday, petrol prices increased by 9.1 percent in a month. The rise in energy prices played an important role in increasing inflation. Higher than expected inflation data increased uncertainty regarding the US Federal Reserve's interest rates, which also affected the stock market.
Meanwhile, there is news of increasing inflation in India also. According to available data, the country's wholesale inflation rate increased to 11.39 percent in September 2026, whereas it was 9.9 percent in August. Retail inflation also increased from 4.83 percent in August to 5.54 percent in September.
American stock market decline
Higher than expected inflation figures, fear of interest rate hike and weak financial results of companies increased pressure on the US stock market. The Nasdaq lost about 2 percent, while the S&P 500 lost about 1 percent.
Debt-related concerns along with weakness in shares of Artificial Intelligence (AI) and semiconductor companies also affected investor sentiment. With this decline, the S&P 500's streak of avoiding a 1 percent decline in a single day for 53 consecutive trading sessions also ended.
American inflation increased more than expected
The US consumer price index (CPI) increased by 0.6 percent on a monthly basis during September. The market was expecting the annual inflation rate to be 3.6 percent, but it increased to 3.7 percent.
Core inflation, which excludes volatile food and energy prices, stood at 2.6 percent on-year. This was more than the market's estimate of 2.5 percent. At the same time, on monthly basis, core CPI increased by 0.3 percent, whereas it was estimated to be 0.2 percent.
These data indicate that inflationary pressure in the US is not limited to the energy sector alone. The rise in prices of other goods and services also remains a matter of concern.
Petrol prices jump by 9.1%
The US energy index registered a growth of 5.2 percent in September. Petrol prices increased by 9.1 percent. According to the report, the rise in petrol prices contributed to almost half of the overall CPI rise during the month.
During the last one year, petrol prices have increased by 34.2 percent and heating oil prices have increased by 74.2 percent.
At the same time, food prices remained stable on a monthly basis in September, but they increased by 2.5 percent on an annual basis. Prices of housing, used cars and trucks also registered an increase. Clothing prices rose 0.3 percent during the month and 3.4 percent on an annual basis. According to the report, import duty or tariff can also affect the prices of clothes.
Increased uncertainty over Federal Reserve interest rates
These inflation figures have come at a time when there is pressure on the energy market due to tension between America and Iran. Rising energy prices may increase transportation and production costs, which may also impact the prices of other goods and services.
Rising inflation could become a matter of political concern for the US economy as well as ahead of the midterm elections in November.
According to CNBC report, traders changed their estimates regarding the upcoming monetary policy meeting of the Federal Reserve after higher than expected inflation data came out. According to CME Group's FedWatch tool, the market estimated the probability of raising interest rates at the October meeting at about 54 percent.
If inflation remains at persistently high levels, it may be difficult for the Federal Reserve to cut interest rates. On the other hand, due to increase in interest rates, there is a possibility of loan becoming expensive and financial costs of companies increasing. In such a situation, investors' eyes will be on the upcoming economic data and the next decision of the Federal Reserve.