Consumer prices rose 0.6% in September, putting annual inflation rate at 3.7% - CNBC
The U.S. consumer price index rose 0.6% in September, bringing the annual inflation rate to 3.7%. Surging energy costs, particularly gasoline, were the primary drivers of this increase, keeping inflation above the Federal Reserve's target.
Why it matters
Higher-than-expected inflation increases the likelihood of the Federal Reserve raising interest rates, which impacts borrowing costs and market stability.
September brought little relief to the accelerating cost of living, as consumer prices increased again and kept the inflation rate well above the Federal Reserve's goal.
The consumer price index , a broad measure of goods and services costs across the U.S. economy, rose a seasonally adjusted 0.6% for the month, putting the 12-month rate at 3.7%, the Bureau of Labor Statistics reported Wednesday. Economists surveyed by Dow Jones expected respective gains of 0.6% and 3.6%.
Stripping out volatile food and energy costs, the so-called core CPI rose 0.3% for the month and was up 2.6% on an annual basis, compared with respective estimates for 0.2% and 2.5%.
The annual rate for headline inflation was 3.4% in August while the core rate was 2.4%.
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