U.S. consumer prices were unchanged in September and underlying inflation retreated. This seems to support expectations the Federal Reserve will cut interest rates this month for the third time this year amid risks to the economy from trade tensions.
Figures released by he U.S. Labor Department Thursday showed the consumer price index edged up 0.1% in August. In the 12 months through September, CPI increased 1.7% after advancing by the same margin in August.
Economists had forecast the CPI nudging up 0.1% in September and rising 1.8% on a year-on-year basis.
Underlying inflation slowed in September following solid gains over the last three months. Excluding the volatile food and energy components, the CPI climbed 0.1% after gaining 0.3% for three straight months.
The flat consumer price index last month was the weakest reading since January and came as increases in the cost of food and rents were offset by decreases in the prices of energy and used cars and trucks.
