Baku:The US dollar index surged to an 18-month high after the announcement of higher-than-expected annual inflation in the United States for September. This index, which evaluates the dollar against six major currencies, rose by 0.57% to 102.75 in response to the inflation data.

According to Anadolu Agency, the euro fell by 0.7% to $1.112 as the US dollar strengthened. Consumer prices in the US increased by 3.7% year-on-year in September, up from 3.4% in August, surpassing market expectations of 3.6%. These figures were released by the Bureau of Labor Statistics.

On a monthly basis, consumer prices rose by 0.6%, compared to a 0.4% increase in August. Gasoline prices were a significant factor in this increase, jumping 9.1% and contributing to more than half of the overall rise. Additionally, energy prices climbed 5.2%, while shelter costs increased by 0.4%.

Core inflation, which excludes food and energy prices, rose to 2.6% annually from 2.4% in August, with monthly core inflation steady at 0.3%. The rise in both headline and core inflation indicates ongoing price pressures as investors evaluate the prospects for Federal Reserve monetary policy. Higher US interest rates can bolster the dollar by making dollar-denominated assets more appealing to investors.