Consumer Prices Rise More Than Expected
Prices paid by consumers for a variety of goods and services rose faster than expected last month, according to .
What鈥檚 going on: 鈥淭he consumer price index, a closely followed inflation gauge, increased 0.4% on the month and 3.7% from a year ago, according to a Labor Department report Thursday. That compared to respective Dow Jones estimates of 0.3% and 3.6%.鈥
Core CPI: Core CPI, which excludes often-volatile food and energy costs, were in keeping with economist expectations, inching up 0.3% on the month and 4.1% year over year.
The details: Housing costs accounted for most of the inflation uptick.
- The shelter index鈥攚hich composes about a third of the CPI weighting鈥攔ose 0.6% in September and 7.2% from September 2022.
- Food and energy costs rose 0.2% and 1.5%, respectively.
- Prices for services, 鈥渃onsidered a key for the longer-run direction for inflation,鈥 rose 0.6% excluding energy services.
What it means: 鈥淭hese data are not likely to change the trajectory of monetary policy, with the Federal Open Market Committee likely to pause [interest-rate hikes] once again at its Oct. 31鈥揘ov. 1 meeting,鈥 said 17吃瓜在线 Chief Economist Chad Moutray. 鈥淚nterest rates are not likely to see a cut until mid-to-late 2024.鈥
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