U.S. consumer prices rose significantly in September and are set to rise further in the months ahead amid a surge in the costs of energy products.
Source: U.S. Department of Labor
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The consumer price index jumped 0.4% last month after rising 0.3% in August. In the 12 months through September, the CPI rose 5.4% after expanding to 5.3% YoY in August.
The CPI, excluding the volatile food and energy components, jumped 0.2% after edging up 0.1% in August, the smallest increase in six months. The so-called core CPI increased 4.0% on a YoY basis after increasing 4.0% in August.
Expensive energy products contributed to the rising wage growth exerting upward pressure on the inflation rate. Last week, the government reported that average hourly earnings rose by the month in seven months on a YoY basis in September due to worker shortages.
The Fed’s preferred inflation measure for its flexible 2% target, the core personal consumption expenditures price index, rose 3.6% in the 12 months through August, expanding the same margin for a third consecutive month.