US inflation rose 3.7% in September, more than economists expected and still well above the Federal Reserve’s 2% target, as the central bank weighs whether to hike interest rates again by year’s end.
The reading for the Consumer Price Index a closely watched measure of inflation that tracks changes in the costs of everyday goods and services matches the reading in August, and is slightly above the 3.6% advance that economists expected, according to data by the Bureau of Labor Statistics released Thursday.
On a monthly basis, inflation slowed to 0.4% from 0.6% in August, partly because of lower pressure from energy prices.
However, core CPI a number that excludes volatile food and energy prices and serves as a closely watched gauge among policymakers for long-term trends held steady at 0.3% month to month and rose 4.1% from a year ago, in line with expectations.
Though September’s CPI is also a cooldown from inflation’s 9.1% peak in June 2022, it still remains well above the Fed’s 2% goal. Stock futures dropped ahead of the market opening as traders increased their bets of another rate hike to around 50%, up from 30% earlier this week.
“The bigger picture is that the trend is still quite encouraging, but the fight continues,” said Olu Sonola, head of US regional economics at Fitch Ratings in New York. “They [Fed officials] may now want to extend the pause to December, given the recent increase in long-term rates.”
The gasoline index’s 2.1% advance was also a large contributor to the CPI, the data showed, though the federal agency said shelter’s 0.2% increase accounted for over half of the increase.
Gasoline experienced an eye-watering 10.6% increase last month, when AAA figures showed that the average price for a gallon of gas was $3.85.
As of Thursday, a gallon of gas in the US averages $3.65, according to AAA.
While many investors had been willing to look past the volatile energy numbers, a surprisingly resilient labor market has some worried that inflation could be more stubborn.
September’s employment report revealed that the US economy added a whopping 336,000 jobs last month — an unexpected surge that contradicts the notion the Fed may tamp down its aggressive tightening regime.
The blowout number was nearly double the 170,000 jobs economists had expected, and also sharply higher than an upwardly revised 227,000 jobs added in August, according to fresh data released by the Bureau of Labor Statistics last week.
The news sent yields on US Treasury bonds to their highest levels in 16 years and sent the Dow Jones Industrial Average into the red for 2023.
Since inflation hit a four-decade peak last summer, the central bank has worked to bring the stubborn figure down by hiking rates another 25 basis points to a 22-year high in August in hopes of an economic slowdown.
The benchmark federal funds rate currently sits between 5.25% and 5.5%. Last month, Fed officials unanimously decided to hold the record-high rate steady for the second time in six policy meetings so far this year.
But thanks to a strong labor market, the US economy has avoided a downturn, and even the Fed has said its no longer predicting the economy will slip into a recession by the end of the year.
“We must wait for more data to see if this is just a blip or if there is something more fundamental driving the increase such as higher rent increases in larger cities offsetting softer increases in smaller cities,” said US Bank of America Securities economist Stephen Juneau.
“When deciding whether to raise rates one last time this year, the FOMC will be asking whether inflation needs another nudge or if its getting to 2% on its own. Its increasingly looking like the latter,” NerdWallet data analyst Elizabeth Renter told The Post.
“The Fed, astheyreall too happy to remind us, is laser focused on getting inflation down to 2%.”
Fed Chair Jerome Powell has said central bankers will be taking a data-dependent approach moving forward, leaving more interest rate hikes before years end up in the air.
Markets were spooked ahead of the jobs report, falling more than 1% when the Labor Department released its Job Openings and Labor Turnover Summary, which showed job openings increased to 9.61 million in August up from 8.9 million in July.
Week 7 shook up the College Football Playoff picture. No team earned a more impactful result than Indiana, whose win at Oregon is now the best in the country during the first half of the season. Indiana’s playoff chances jumped 21%, climbing to a 93% chance to make the playoff, according to the Allstate Playoff Predictor.
Not only are the Hoosiers off the bubble, but Indiana also is chasing a first-round bye as one of the top four seeds, having cemented its place alongside Ohio State and Miami as one of the nation’s best teams.
Indiana wasn’t the only winner, though, as South Florida and Texas Tech both saw their playoff chances jump by at least 15%.
Below you’ll find one team in the spotlight for each of the Power 4 leagues and another identified as an enigma. We’ve also tiered schools into three groups. Teams with Would be in status are featured in this week’s top 12 projection, a snapshot of what the selection committee’s ranking would look like if it were released today. Teams listed as On the cusp are the true bubble teams and the first ones outside the bracket. A team with Work to do is passing the eye test (for the most part) and has a chance at winning its conference, which means a guaranteed spot in the playoff. And a team that Would be out is playing in the shadows of the playoff — for now.
The 13-member selection committee doesn’t always agree with the Allstate Playoff Predictor, so the following categories are based on historical knowledge of the group’s tendencies plus what each team has done to date.
Reminder: This will change from week to week as each team builds — or busts — its résumé.
Spotlight: Tennessee. The Vols have looked like a borderline playoff team against unranked opponents in recent weeks, beating Mississippi State and Arkansas by a combined 10 points with one overtime. Offensively they’ve been elite, averaging 300 yards passing and 200 rushing per game. Defensively, they need to stop the run to make to challenge in the SEC. They’ll have a chance against Alabama on Saturday to further legitimize their hopes. With a win, Tennessee’s chances of reaching the playoff would jump to 52%, according to the Allstate Playoff Predictor. Tennessee ranks No. 10 in ESPN’s game control metric and No. 19 in strength of record. The Vols are projected in the committee’s No. 12 spot this week, which means they would get knocked out of the actual field during the seeding process to make room for the highest-ranked Group of 5 champion. The five highest-ranked conference champions are guaranteed spots in the playoff, so if the fifth team is ranked outside of the committee’s top 12, its No. 12 team gets the boot.
Enigma: Texas. The Longhorns took a baby step toward a return to CFP relevance with a big win against Oklahoma, but it was their first win against a Power 4 opponent and their first against a ranked team. Texas has the 15th-most-difficult remaining schedule, and with two losses is already in a precarious position. The Longhorns will play three of their next four opponents on the road (at Kentucky, Mississippi State and Georgia). There were encouraging signs from the win against the rival Sooners, from the stingy defense that flustered quarterback John Mateer all game to what looked like an improved offensive line that gave quarterback Arch Manning some time to throw. He completed 16 of 17 passes for 119 yards and a touchdown when under no duress. If Texas can continue to put it all together against the heart of its SEC schedule, it could make a run to be one of the committee’s top two-loss teams.
If the playoff were today
Would be in: Alabama, Georgia, LSU, Oklahoma, Ole Miss, Texas A&M
On the cusp: Tennessee
Work to do: Missouri, Texas, Vanderbilt
Would be out: Arkansas, Auburn, Florida, Kentucky, Mississippi State, South Carolina
Big Ten
Spotlight: USC. The Trojans have looked like a CFP top 25 team through the first half of the season, with their only loss a close one on the road to a ranked Illinois team. In Week 7, USC’s convincing 31-13 win against Michigan pushed it into more serious Big Ten contention. Ohio State and Indiana are the leaders, followed by Oregon, but USC has the fourth-best chance (7.1%) to reach the Big Ten title game, according to ESPN Analytics. That will change when the Trojans go to Oregon on Nov. 22, but they don’t play Ohio State or Indiana during the regular season. A win at Notre Dame on Saturday would be a significant boost to USC’s playoff résumé, while simultaneously knocking the Irish out of playoff contention. According to the Allstate Playoff Predictor, USC’s chances of reaching the playoff would adjust to 58% with a win against Notre Dame. According to ESPN Analytics, USC has less than a 50% chance to win its games against Notre Dame and Oregon.
Enigma: Washington. The Huskies have improved significantly and quickly under coach Jedd Fisch, who’s in his second season. Their only loss was to Ohio State, 24-6, on Sept. 27, but they lack a statement win that gives them real postseason credibility. Wins at Washington State and Maryland are certainly respectable, but bigger opportunities loom starting on Saturday at Michigan. This game has significant implications, because if the Huskies can win, they stand a strong chance of hosting Oregon as a one-loss team in the regular-season finale. According to ESPN Analytics, Michigan has a 67.6% chance to win on Saturday, and Oregon has a 70% chance to beat Washington on Nov. 29. The Huskies are projected to win every other game, though. A win against Michigan could increase their playoff hopes significantly.
If the playoff were today
Would be in: Indiana, Ohio State, Oregon
On the cusp: USC
Work to do: Nebraska, Washington
Would be out: Iowa, Illinois, Maryland, Michigan, Michigan State, Minnesota, Northwestern, Penn State, Purdue, Rutgers, UCLA, Wisconsin
ACC
Spotlight: Georgia Tech. Raise your hand if you had Georgia Tech at Duke on Saturday circled as a game that would impact the College Football Playoff. The Yellow Jackets would have been the next team to crack the latest CFP projection this week, and their chances of reaching the ACC championship game will skyrocket if they can win at Duke. Georgia Tech currently has the fourth-best chance to reach the ACC title game behind Miami, Duke and Virginia. ESPN Analytics gives the Blue Devils a 61.8% chance to win. The only other projected loss on the Jackets’ schedule is the regular-season finale against Georgia. Even if Georgia Tech reaches the ACC title game and loses, it could get in as a second ACC team with a win over Georgia.
Enigma: Virginia. The Hoos have won back-to-back overtime games against Florida State and Louisville, putting themselves in contention for a spot in the ACC championship. They host a tricky Washington State team on Saturday that just gave Ole Miss a few headaches, though, and need to avoid a second loss to an unranked team. The toughest game left on their schedule is Nov. 15 at Duke. Without an ACC title, Virginia is going to have a tough time impressing the committee with a schedule that includes a loss to unranked NC State and possibly no wins against ranked opponents. It didn’t help the Hoos that Florida State lost to an unranked Pitt, as the win against the Noles was the highlight of their season so far.
If the playoff were today
Would be in: Miami
On the cusp: Georgia Tech
Work to do: Virginia
Would be out: Boston College, Cal, Clemson, Duke, Florida State, Louisville, North Carolina, NC State, Pitt, SMU, Stanford, Syracuse, Virginia Tech, Wake Forest
Big 12
Spotlight: BYU. The Cougars needed a late-night double-overtime win at Arizona to stay undefeated and are on the path to face Texas Tech in the Big 12 championship game. The question is if they can stay undefeated until the Nov. 8 regular-season matchup against the Red Raiders. BYU has its second-most difficult remaining game on Saturday against rival Utah, which is also in contention for the Big 12 title. BYU has a slim edge with a 51% chance to win, which would be a critical cushion considering back-to-back road trips to Iowa State and Texas Tech await. The Big 12 has also gotten a boost from Cincinnati, which has a favorable remaining schedule and could be a surprise CFP top 25 team. If BYU stumbles over the next three weeks, a road win at a ranked Cincinnati team would help its résumé. Speaking of the Bearcats …
Enigma: Cincinnati. Is this team for real? The Bearcats have won five straight since their 20-17 season-opening loss to Nebraska, including three straight against Big 12 opponents Kansas, Iowa State and UCF. All three of those teams are .500 or better, and the selection committee will respect that as long as it holds. Cincinnati also has November opportunities against Utah and BYU, which could change the playoff picture in the Big 12. ESPN Analytics gives the Bearcats less than a 50% chance to beat Utah, BYU and TCU.
If the playoff were today
Would be in: Texas Tech
On the cusp: BYU
Work to do: Cincinnati, Houston, Utah
Would be out: Arizona, Arizona State, Baylor, Colorado, Iowa State, Kansas, Kansas State, Oklahoma State, TCU, UCF, West Virginia
Independent
Would be out:Notre Dame. The Fighting Irish have the best chance to win out of any team in the FBS, with a 49% chance to finish 10-2. According to the Allstate Playoff Predictor, Notre Dame would have a 50% chance to reach the CFP if it runs the table. That seems accurate, given the selection committee would compare Notre Dame against the other 10-2 contenders, and it’s a coin toss as to whether the room would agree that the Irish’s résumé and film make them worthy of an at-large bid. How Miami and Texas A&M fare will impact this — as will the head-to-head results if those teams don’t win their respective leagues and are also competing with the Irish for one of those at-large spots. It helps Notre Dame that opponents USC and Navy could finish as CFP top 25 teams if they continue to win. Undefeated Navy could also make a run at the Group of 5 playoff spot.
Group of 5
Spotlight: South Florida. South Florida. The Bulls are back on top after their convincing 63-36 win at previously undefeated North Texas, which just a week ago was listed here as a potential Group of 5 contender. Following the win, the Bulls’ chances of reaching the CFP increased by 20%, according to ESPN Analytics. South Florida’s lone loss was Sept. 13 at Miami, 49-12, which was a significant defeat against what could be the committee’s No. 1 team. Although that result showed the gap between the Bulls and one of the nation’s top teams, it certainly didn’t eliminate South Florida, which has one of the best overall résumés of the other contenders. With wins against Boise State, Florida and now at North Texas, this is a team that earned the edge in this week’s latest projection. Still, South Florida has the second-best chance of any Group of 5 school to reach the playoff (30%) behind Memphis (42%), according to ESPN Analytics.
Enigma: UNLV. Undefeated UNLV survived a scare from 1-5 Air Force on Saturday to stay undefeated and in contention for a playoff spot. UNLV and Boise State, both of the Mountain West Conference, are the only teams outside of the American Conference with at least a 5% chance to reach the playoff, and they play each other in a critical game on Saturday. UNLV has scored at least 30 points in each of its six games this season and is 6-0 for the first time since 1974, but it hasn’t always been pretty. UNLV scored the winning touchdown against Air Force with 36 seconds left and allowed the Falcons 603 total yards. The Rebels have the fourth-best chance to reach the playoff at 9% behind the American’s Memphis, South Florida and Tulane.
Britain must prepare for at least 2C of warming within just 25 years, the government has been advised by its top climate advisers.
That limit is hotter and sooner than most of the previous official advice, and is worse than the 1.5C level most of the world has been trying to stick to.
What is the 1.5C temperature threshold?
Under the 2015 Paris Agreement, countries agreed to try to limit warming to “well below” 2C – and ideally 1.5C.
This new warning from the government’s top advisers, the independent Climate Change Committee (CCC), spells out the risk to the UK in the starkest terms yet.
In a letter today, the CCC said ministers should “at a minimum, prepare the country for the weather extremes that will be experienced if global warming levels reach 2C above pre-industrial levels by 2050”.
It is the first time the committee has recommended such a target, in the hopes of kickstarting efforts to make everything from flooded train tracks to sweltering classrooms more resilient in a hotter world – after years of warnings the country is woefully unprepared.
Image: Periods of drought in England are expected to double at 2C of global warming, compared to the recent average period of 1981 to 2010. Pic: PA
How climate change affects the UK
The UK is already struggling to cope with the drought, flooding, and heat brought by the current 1.4C – “let alone” what is to come, the advisers said.
Just this year, the country battled the second-worst harvest on record and hottest summer ever, which saw an extra 300 Londoners die.
“Though the change from 1.5C and 2C may sound small, the difference in impacts would be substantial,” CCC adviser Professor Richard Betts told Sky News.
It would mean twice as many people at risk of flooding in some areas, and in southern England, 10 times as many days with a very high risk of wildfires – an emerging risk for Britain.
The experts said the mass building the government is currently pushing, including new nuclear power stations and homes, should even be adaptable for 4C of warming in the future – a level unlikely, but which cannot be ruled out.
Image: At 2C, peak average rainfall in the UK is expected to increase by up to 10–15% for the wettest days. Pic: Reuters
Is it too late to stop climate change or limit to 1.5C?
The CCC’s Baroness Brown said in a briefing: “We continue to believe 1.5C is achievable as a long-term goal.
“But clearly the risk it will not be achieved is getting higher, and for risk management we do believe we have to plan for 2C.”
World leaders will discuss their plans to adapt to hotter temperatures at the COP30 climate summit in Brazil in November.
Professor Eric Wolff, who advises the Royal Society, said leaders needed to wake up.
“It is now very challenging even to stay below two degrees,” he told Sky News.
“This is a wake-up call both to continue reducing emissions, but at the same time to prepare our infrastructure and economy for the inevitable climate changes that we are already committed to.”