U.S. consumer prices rose in September on increases for the cost of gasoline and rents, suggesting a steady buildup of inflation pressures that could keep the Federal Reserve on track to raise interest rates in December.
Figures released Tuesday by the U.S. Labor Department suggested the Consumer Price Index increased 0.3% last month after rising 0.2% in August. In the 12 months through September, the CPI accelerated 1.5%, the biggest year-on-year increase since October 2014.
The CPI jumped 1.1% in the year to August. Economists had forecast inflation rising 0.3% last month and jumping 1.5% from a year ago.
So-called core CPI, removing out food and energy costs, gained 0.1% last month after climbing 0.3% in August. That slowed the year-on-year increase in the core CPI to 2.2% following a 2.3% rise in August.
The backtracking in the monthly core CPI reading will probably do little to change the view that the Fed will raise interest rates at its December meeting.
