U.S. consumer inflation accelerated in September, with prices up 3.7% from a year earlier and 0.6% over the month, as gasoline’s sharp rise drove more than half of the monthly increase, the Labor Department reported Oct. 14.
The annual rate climbed from 3.4% in August, while the monthly increase matched economists’ expectations; their forecast for the annual rate was 3.6%. Gasoline prices jumped 9.1% in September, and the broader energy index rose 5.2%; energy prices were up 20.4% over the year. The core consumer price index, which excludes food and energy, increased 0.3% for the month and 2.6% over 12 months, up from 2.4% in August.
Shelter costs rose 0.4%, while the overall food index was unchanged: grocery prices dipped 0.1%, and restaurant prices increased 0.2%. Other categories rising during the month included recreation, used vehicles, airline fares, medical care and apparel, showing that price increases extended beyond fuel. The report underscores how a steep energy increase can lift the overall inflation measure even as food prices hold steady and core inflation moves more gradually.