Image courtesy Yahoo FinanceInflation moderated in September as energy price increases eased from the previous month and used car prices continued to decline, according to the latest data from the Bureau of Labor Statistics released Thursday morning.
The Consumer Price Index (CPI) showed inflation rose 0.4% over last month and 3.7% over the prior year on a headline basis in September, a deceleration from August’s 0.6% month-over-month increase and in line with August’s 3.7% annual rise.
Both measures were slightly higher than economist forecasts for a 0.3% month-over-month increase and a 3.6% annual increase, according to data from Bloomberg.
On a “core” basis, which strips out the more volatile costs of food and gas, prices in September climbed 4.1% over last year – a slowdown from the 4.3% annual increase seen in August. Monthly core prices rose 0.3%, on par with August. Both measures met economist expectations.
Inflation has remained significantly above the Federal Reserve’s 2% target. A labor market that, while softening in certain areas, is still tight, coupled with an upside surprise in wholesale inflation data, suggests the Federal Reserve could continue to raise interest rates. The Federal Reserve’s latest meeting minutes, released Wednesday, showed policymakers support a more restrictive rate environment.
Click here to read the full report from Alexandra Canal at Yahoo Finance.
