Hot CPI data puts October Fed rate hike back in play, Natixis says

September's hotter-than-expected CPI report has put an October Federal Reserve rate hike back into consideration, according to Natixis economists, who say the data is far enough from consensus to spark debate. The report showed broad-based inflation, with headline CPI rising 0.6% month-over-month driven by a 9.1% jump in gasoline prices, while core goods and shelter costs also increased. Natixis economists Christopher Hodge and Selin Aker noted the data challenges confidence in the inflation trajectory. Despite the pressure, Natixis predicts the Fed will pause in October to assess economic variables and avoid political fallout before mid-term elections, though they acknowledge the data gives hawks more ammunition and markets may force the FOMC's hand.