What keeps inflation so high? The everyday items whose price continues to rise came to light: annual inflation remains stable at 3.7%
- Prices increased by 0.4 percent on a monthly basis and by 3.7 percent on an annual basis
- Petrol and car insurance prices rose by 2.1 and 1.3 percent in September
- The numbers are unlikely to have a significant impact on Fed interest rates, analysts say
Annual inflation remained stable in September, with prices rising 3.7 percent year-on-year, mainly thanks to food and energy costs.
Figures released Thursday by the U.S. Bureau of Labor Statistics show that prices rose 0.4 percent on a monthly basis, between August and September.
Last month it was just under 0.6 percent, mainly as a result of lower energy prices.
The core rate, excluding volatile food and energy, was 0.3 percent on a monthly basis.
Gasoline, hotels, car insurance and new vehicles rose by 2.1, 4.2, 1.3 and 0.3 percent respectively month-on-month. Health insurance and used car prices went down. 3.5 and 2.5 percent.
Figures released Thursday by the U.S. Bureau of Labor Statistics show the biggest rises and fall
Annual inflation remained stable in September, with prices rising 3.7 percent from the previous year, the U.S. Bureau of Labor Statistics reported. Pictured is a man shopping in Brooklyn, New York
All food types rose 0.2 percent, the same increase as the month before, while energy prices rose 1.5 percent, a significant drop from August, when it stood at 5.6 percent.
The annual inflation rate of 3.7 percent was higher than expected. Economists polled by Bloomberg predicted that the consumer price index would fall slightly to 3.6 percent from 3.7 last month.
Motor vehicle insurance saw one of the largest increases, up 18.9 percent from a year ago. The reception increased by 7.2 percent compared to last year.
September’s inflation figures are the last before the Fed meets on November 1 and will revise interest rates again. That’s what they will do help shape Federal Reservethe next policy steps.
The country kept its key interest rate steady at a 22-year high in September, but has indicated that another rate hike is likely before the end of the year.
The cost of all types of food increased by 0.2 percent, the same increase as the month before
A rise in the gasoline index was a major contributor to consumer inflation, the Department of Labor noted in its report
Jay Bryson of Wells Fargo told Bloomberg TV that Thursday’s figures were a “damp comment” because they would not change anyone’s view of the economy.
That view was echoed in the markets in the hour following the report’s release. The S&P 500 was flat and two-year Treasury yields rose less than 0.1 percent.
Dan Suzuki of Richard Bernstein Advisors told Bloomberg that the report “will be forgotten almost immediately.”
In contrast, the department’s jobs report earlier this month showed a sharp increase in new jobs, adding 336,000 and counting, nearly twice economists’ expectations. That indicated that spending and inflation could increase.