"The Fed is more worried about the labor market and less concerned about inflation at this point," a Glenmede analyst said.

Switzerland’s government slashed its inflation forecasts, a move in line with expectations that the central bank will cut interest rates again when officials meet next week.

Inflation held steady at 2.2% in the year to August, despite a jump in the cost of flights. The rise in air fares was offset by lower fuel prices and prices in restaurants increasing more slowly, the Office for National Statistics (ONS) said.