U.S. inflation accelerated to 3.7% in September from 3.4% in August, the Bureau of Labor Statistics reported on October 14. Consumer prices rose 0.6% over the month, after a 0.4% increase in August, as a sharp jump in gasoline costs put renewed pressure on household budgets.
The official report identified gasoline as the largest driver: its index climbed 9.1%, accounting for more than half of the monthly increase in overall prices. Energy prices rose 5.2%, compared with 2.1% in August. These monthly changes are seasonally adjusted, while the annual headline rate is not.
Price pressures also extended beyond fuel. The index excluding food and energy increased 0.3% over the month and 2.6% over a year, according to the bureau. Reuters reported that economists had expected respective gains of 0.2% and 2.5%, making both core readings stronger than forecast.
Housing costs added to the increase. The shelter index rose 0.4% in September after gaining 0.3% in August and stood 3.2% above its year-earlier level. However, food prices were unchanged overall: groceries fell 0.1% while food away from home rose 0.2%, the official figures showed.
For households, the report showed an uneven pattern of expenses, with fuel and housing rising while some other costs eased. Prescription drug prices fell 1.2% during September and physicians' services were unchanged, the bureau said. The aggregate increase therefore did not mean that every category became more expensive.
Reuters reported that the stronger figures renewed attention on a possible Federal Reserve rate increase later in October. The data inform that debate but do not establish the outcome of the next policy decision. For businesses and consumers, the immediate development is faster price growth, with energy responsible for much of the monthly acceleration.
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