US consumer prices rise less than expected before Fed decision

"United States consumer prices have increased less than expected in September as inflationary pressures continue to weigh on the domestic economy. The consumer price index (CPI) report released by the Bureau of Labor Statistics on Friday shows that prices rose by 0.3 percent in September from the previous month, a slowdown from the 0.4 percent increase in August. Compared with this time last year, the CPI increased by 3 percent."

"The gains were led by the price of petrol, which rose by 4.1 percent on a monthly basis. Overall, the index for energy rose by 1.5 percent over the same period. Food prices rose by 0.2 percent in September after a 0.5 percent increase in August on a monthly basis. Prices for goods and services outside of food and energy, including shelter, airline fares, household items, and apparel, rose by 0.2 percent on a month basis in September after an increase of 0.3 percent in August."

Consumer prices rose 0.3 percent in September, down from August's 0.4 percent increase, and were 3.0 percent higher than a year earlier versus 2.9 percent previously. Monthly gains were driven by a 4.1 percent jump in petrol, while the broader energy index rose 1.5 percent. Food prices increased 0.2 percent after a 0.5 percent gain in August. Core prices excluding food and energy climbed 0.2 percent month-on-month following a 0.3 percent rise in August, with shelter, airline fares, household items and apparel contributing. The report precedes a Federal Reserve meeting where a 25 basis-point rate cut to 3.75–4 percent is expected. The CPI figure feeds into the Social Security cost-of-living adjustment.

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