Higher gasoline prices drove over half of September’s monthly inflation increase.
U.S. annual inflation rose to 3.7 percent in September, exceeding forecasts as higher fuel prices drove the increase, while core inflation also topped expectations, official data showed on Oct. 14.
The consumer price index climbed 0.6 percent on a seasonally adjusted basis from August, when prices rose 0.4 percent, the Bureau of Labor Statistics said.
The monthly increase matched the average estimate from a broad survey of forecasters. The annual rate, up from 3.4 percent in August, beat the 3.6 percent prediction.
Core inflation, which excludes food and energy, rose 0.3 percent on the month, matching August’s pace but exceeding the 0.2 percent forecast. The annual rate climbed to 2.6 percent from 2.4 percent, above expectations of 2.5 percent.
Gasoline prices jumped 9.1 percent, accounting for more than half of the overall monthly increase. The broader energy index rose 5.2 percent, accelerating from 2.1 percent in August.
Shelter costs increased 0.4 percent, compared with 0.3 percent the previous month. Food prices were unchanged overall, with grocery prices falling 0.1 percent and the cost of eating out rising 0.2 percent.
Other categories recording increases included used vehicles, airfares, medical care and clothing. Communication prices were among the few major categories to fall.
The figures follow the Federal Reserve’s decision in September to raise its benchmark interest rate by a quarter percentage point to a range of 3.75 to 4 percent.
The central bank said inflation remained elevated and that the move would support a return to its 2 percent goal.
