The consumer price index rose 0.4% in September on a seasonally adjusted basis after rising 0.1% in August, the US Labor Department said Thursday.
Consumer prices rose 8.2% over the last 12 months in United States, the department said. Increases in the shelter, food, and medical care indexes were the largest contributors in boosting inflation. The food index jumped 0.8% over the month while the energy index fell 2.1%.
Thursday’s CPI numbers were slightly higher than anticipated; economists had predicted a rise of 8.1%. Core-CPI prices increased 6.6% compared to a year ago — a new 40-year-high.
Stock futures fell after the CPI report was released at 8:30 a.m. ET.
The latest data arrives weeks after the Federal Reserve escalated its fight against inflation with a third consecutive rate increase. The continued climb in prices may signal that the Fed’s aggressive rate hikes have down little to stave off inflation pressures.
The Fed has put forward a string of aggressive interest rate hikes in recent months as it tries to slash price increases by slowing the economy and choking off demand. But the approach risks tipping the U.S. into a recession.
Federal Reserve Chair Jerome Powell last month reasserted the central bank’s commitment to bring inflation down to a target rate of 2%, saying the Fed expects to put forward “ongoing increases” to its benchmark interest rate.
Lately, evidence has mounted that the Fed’s moves have put the brakes on some economic activity.
While the labor market remains robust, hiring has cooled. U.S. employers added 263,000 jobs in September and the unemployment rate fell slightly to 3.5% from 3.7%, according to government data released last Friday.
The September hiring total falls well below the average monthly jobs added of 420,000 so far this year and 562,000 per month in 2021, according to the Department of Labor.
Meanwhile, rent increases have sent mortgage rates higher and slowed the construction of new homes.
Through : ABC News