CPI inflation September 2024

The pace of price increases last year took an unexpected step in September as policymakers consider their next move on interest rates, according to a Labor Department report Thursday.

The consumer price index, a broad measure of the cost of goods and services across the U.S. economy, rose a seasonally adjusted 0.2% for the month, translating to an annual inflation rate of 2.4%. Both values ​​were 0.1 percentage points above the Dow Jones consensus.

Excluding food and energy, core prices rose 0.3% month-on-month, an annual rate of 3.3%. Both core values ​​were also 0.1 percentage points above the forecast.

Much of the increase in inflation – more than three-quarters of the increase – was due to a 0.4% increase in food prices and a 0.2% increase in housing costs, the Bureau of Labor Statistics said in the release. This offset a 1.9% decline in energy prices.

Other factors contributing to the increase included a 0.3% increase in used car costs and a 0.2% increase in new car costs. Medical care services rose 0.7% and clothing prices rose 1.1%.

The release comes as the Federal Reserve has begun cutting interest rates. After a half-percentage point cut in September, the central bank is expected to continue cutting interest rates, although the pace and extent remain questionable.

Fed officials have become more confident that inflation will fall back toward its 2 percent target, but at the same time expressed some concern about the state of the labor market.

In other economic news Thursday, initial jobless claims posted an unexpected rise, reaching 258,000 in the week ended Oct. 5. That was the highest total since August 5, 2023, an increase of 33,000 from the previous week and well above the forecast for 230,000.

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