US service sector slows amid inflation

The growth of the services sector in the United States slowed down in September, despite sustained strong domestic demand that led to input prices reaching their highest levels in over four years, particularly in the energy sector due to the US-Israel war with Iran. Expectations indicate that inflation may remain elevated until 2027, with the Federal Reserve possibly raising interest rates again. However, a decline in some inflation indicators and job growth has reduced the likelihood of such a move in the upcoming meeting.

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