US inflation sent mixed messages in September, as annual CPI fell to 2.4% from 2.5% in August, while the headline index crept up by 0.2%, according to the US Bureau of Labor Statistics. But core inflation, which excludes food and energy prices, rose to 3.3%, up from 3.2%, marking its first increase in 18 months. Analysts did not expect this and had predicted core inflation would hold steady, Bloomberg reports.

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The reading indicates that inflation is “dying, but not dead,” CNN quotes Olu Sonola, Fitch Ratings head of US economic research, as saying.

While inflation is inching closer to the Fed’s 2% target, the latest reading indicates a more moderate path. “Anyone who thought the Fed would lower rates by another 0.50 basis points in November is dead wrong,” said Jamie Cox of Harris Financial Group. Instead, the Fed will likely cut rates at a slower, more “measured pace,” Cox told Reuters.

The most probable outcome? A 25 bps rate cut in November, with December still up in the air, Sonola added.

EGX30

30,762

-1.3% (YTD: +23.6%)

USD (CBE)

Buy 48.50

Sell 48.64

USD (CIB)

Buy 48.51

Sell 48.61

Interest rates (CBE)

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28.25% lending

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THE CLOSING BELL-

The EGX30 fell 1.3% at Thursday’s close on turnover of EGP 5.4 bn (31.1% above the 90-day average). International investors were the sole net sellers. The index is up 23.6% YTD.

In the green: Cleopatra Hospitals (+7.0%), Oriental Weavers (+4.9%), and Abu Qir Fertilizers (+2.4%).

In the red: Ezz Steel (-7.5%), AMOC (-7.3%), and Fawry (-4.0%).

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