Inflation rose again in September, revealing the persistence of rising prices as the job market shows signs of cooling and consumers head into the holiday season.
Consumer prices increased 3% from a year earlier, persistently rising prices as the job market shows signs of cooling and consumers head into the holiday season.
That is slightly up from 2.9% in August, according to the Labor Department’s Consumer Price Index, a measure of goods and services costs across the country.
Some economists said the numbers won’t be enough to keep the Federal Reserve from cutting interest rates next week, according to a report from USA Today.
Core prices, which exclude volatile food and energy costs, rose 0.2%, after rising 0.3% the month before. That moved the annual core inflation rate to 3%.
Airline fares increased 2.7%, after rising 5.9% in August. Apparel costs rose 0.7% and the index for personal care, recreation, and household furnishings and operations all rose 0.4%
The economic impact of the ongoing government shutdown has not yet been fully felt, Bankrate Financial Analyst Stephen Kates told USA Today. At the Bureau of Labor Statistics, October data collection has been suspended during the lapse in funding.
“Federal layoffs or the absence of backpay would drag down spending and worsen labor conditions, especially in the local areas most affected,” Kates said in an Oct. 21 note, according to the paper. “The longer the shutdown continues, the larger our blind spot will be on current economic conditions.”
While not likely a gamechanger, September’s rise in prices could complicate the central bank’s rate decision at the end of the month.
