U.S. Consumer Prices Rise 0.3% In September, Slightly Less Than Expected

(RTTNews) - A closely watched report released by the Labor Department on Friday showed consumer prices in the U.S. increased by slightly less than expected in the month of September.

The Labor Department said its consumer price index rose by 0.3 percent in September after climbing by 0.4 percent in August. Economists had expected consumer prices to rise by another 0.4 percent.

The report also said the annual rate of growth by consumer prices ticked up to 3.0 percent in September from 2.9 percent in August, although that was slower than the 3.1 percent jump expected by economists.

"US inflation was softer than predicted in September, with the tariff effects remaining limited," said ING Chief International Economist James Knightley. "That should gradually change, but it gives more time for disinflationary forces such as energy, housing and weaker wages to mitigate them."

He added, "In any case, the Fed's more pressing concern is the cooling jobs market as it looks to optimize policy for its dual mandate."

The monthly increase by consumer prices partly reflected a 1.5 percent jump by energy prices, which came as gasoline prices spiked by 4.1 percent.

Excluding food and energy prices, the core consumer price index crept up by 0.2 percent in September after rising by 0.3 percent in August. Core consumer prices were expected to increase by another 0.3 percent.

The Labor Department also said the annual rate of growth by consumer prices slowed to 3.0 percent in September from 3.1 percent August. Economists had expected the pace of growth to remain unchanged.

The monthly uptick by core consumer prices reflected higher prices for shelter, airline fares, recreation, household furnishings and operations and apparel.

Meanwhile, prices for motor vehicle insurance, used cars and trucks and communication were among the few that decreased in September, the Labor Department said.

The report on consumer price inflation was originally scheduled to be released last Wednesday but was postponed until Friday due to the government shutdown. The Labor Department said the data collection for the report was completed before the lapse in appropriations.

While no other releases will be produced until the resumption of regular government services, the consumer price index data allows the Social Security Administration to meet statutory deadlines necessary to ensure the accurate and timely payment of benefits.