Long-Awaited CPI Report Shows September Inflation at a Lower-Than-Expected 3.0% Annual Rate

The Bureau of Labor Statistics reported that the Consumer Price Index increased 3.0% in September from year-ago levels, compared to 2.9% in August. Year-over-year core CPI (which excludes volatile food and energy costs) rose 3.0%, trailing the August rate of 3.1%.

The CPI rose 0.3% month over month in September after rising 0.4% in August. Core CPI also rose 0.2%, matching the August increase.

Economists had expected CPI to rise 0.4% on a monthly basis in September, the same as in August, and 3.1% year over year, according to the consensus estimates from FactSet. Core CPI, which excludes volatile food and fuel prices, was expected to come in at 0.3% on a monthly basis for August and 3.1% year over year.

September CPI Report Key Stats

• CPI rose 0.3% for the month after rising 0.4% in August.
• Core CPI also rose 0.2% after rising 0.3% in August.
• CPI increased 3.0% year over year after increasing 2.9% the prior month.
• Core CPI rose 3.0% from year-ago levels after it rose 3.1% in August.

Food prices increased 0.2% in September after increasing 0.5% in August. Grocery prices rose 0.3%, while restaurant prices increased 0.1%.

Energy prices were mixed after holding steady last month. Utility gas prices fell 1.2%, fuel oil prices increased 0.6%, gasoline prices rose 4.1%, and electricity prices decreased 0.5%.

Shelter prices rose 0.2% in September after rising 0.4% in August.