The U.S. Labor Department reported Thursday that the country’s consumer inflation in September rose 3.7 percent from a year ago, while core inflation, excluding food and energy, increased 4.1 percent.
The Consumer Price Index (CPI) ticked up 0.4 percent in September on a seasonally adjusted basis after increasing 0.6 percent in August, according to the department’s Bureau of Labor Statistics.
The index for shelter was the largest contributor to the monthly all items increase, accounting for over half of the increase, the report noted. An increase in the gasoline index was also a major contributor to the all items monthly rise.
The latest inflation report showed that the so-called core CPI edged up 0.3 percent in September following a same increase in the prior month. Indexes which increased in September include rent, owners’ equivalent rent, lodging away from home, motor vehicle insurance, recreation, personal care, and new vehicles.
Inflation in the country has cooled a lot from a year ago due to the Federal Reserve’s aggressive rate hikes from near-zero to over 5 percent. At its peak in June 2022, the CPI surged 9.1 percent year-on-year.
However, inflation remains far above the Fed’s long-term target of 2 percent, indicating the central bank could take further action. The Fed will make its next decision on interest rates on Nov. 1.