US Consumer Prices Rise 0.5% In September, Slightly Less Than Expected

Lloyd Doyle
October 13, 2017

The energy index rose 10.1% over the past 12 months, its largest 12-month increase since the period ending March 2017.

It's a good look at the core of the consumer and is forecast to rise 0.4% after a 0.2% decline in August. The 12-month change in the index for all items less food and energy remained at 1.7% for the fifth month in a row.

The gasoline index rose 13.1% in September, accounting for three-fourths of the seasonally adjusted all items increase, and the food index picked up slightly.

Some FOMC members suggested that more secular factors, like the influence of technology on lowering prices, might keep inflation below the Fed's target of 2% for longer.

Bulgarian consumer prices rose 2.1 percent on the year in September after a 1.4 percent increase a month earlier, mainly due to an increase of food prices, data from the statistics office showed on Friday. At their September meeting, officials penciled in a rate increase later this year, but some policymakers have expressed concerns about persistently soft inflation.

However, stripping out the rise in energy and weather impact, underlying inflation and sales failed to pack the punch many had expected and the dollar fell on reduced expectations of a December rate hike.

"Hurricane effects are clearly visible - higher gasoline prices boosted gasoline station sales and strength can also be seen in other components as it is likely that there was some uplift as households start to replace lost items", said James Knightley, chief global economist at ING.

The dollar slipped after inflation data came in below expectations.

The dollar index, a measure of the greenback's relative strength against a basket of its chief rivals, fell 0.3% to 92.78.

US crude fell 1.72 percent to $50.42 per barrel and Brent was last at $56.00, down 1.65 percent on the day. Based on the Labor Department data, it's expected that the Social Security Administration will announce a roughly 2.0% increase in monthly benefit payments next year.

The ministry expects average inflation next year at 1.4 percent.

Other reports by Iphone Fresh

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