Inflation stayed elevated in September and remained well above the Federal Reserve’s target rate as policymakers prepare to meet next week to decide on their forthcoming interest rate move.
The Bureau of Labor Statistics on Friday said that the consumer price index (CPI) – a broad measure of how much everyday goods like gasoline, groceries and rent cost – rose 0.3% in September compared with the prior month, while it increased to 3% on a year-over-year basis from 2.9% in August.
The monthly figure was in line with the expectations of economists polled by LSEG, while the year-over-year number was slightly lower than expected.
So-called core prices, which exclude volatile measurements of gasoline and food to better assess price growth trends, were up 0.2% from the prior month and 3% from a year ago. Both figures were slightly cooler than economists’ expectations.
High inflation has created severe financial pressures in recent years for most U.S. households, which are forced to pay more for everyday necessities like food and rent. Price hikes are particularly difficult for lower-income Americans, because they tend to spend more of their already-stretched paychecks on necessities and have less flexibility to save money.
Food prices increased 0.2% in September and are up 3.1% year-over-year. The food at home index increased 0.3% on a monthly basis and was 2.7% higher than a year ago, while the food away from home index rose 0.1% from a month ago and is up 3.7% over the last year.
This is a developing story. Please check back for updates.
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