U.S. consumer prices showed a higher-than-expected increase last month. The consumer price index excluding volatile energy and food recorded the largest rise in 40 years, suggesting the possibility of prolonged inflation.
The U.S. Department of Labor announced on the 13th (local time) that the Consumer Price Index (CPI) for September rose 8.2% year-on-year and 0.4% month-on-month. These figures exceeded expert forecasts (8.1% year-on-year and 0.2% month-on-month). Although the year-on-year increase slowed for the third consecutive month, the pace of deceleration was slow, with a 0.1 percentage point decrease from 8.3% in August to 8.2% in September.
The core CPI, which excludes energy and food, rose 6.6% year-on-year and 0.6% month-on-month. The Department of Labor stated that the core CPI recorded the largest increase in 40 years since August 1982, with a larger rise than August's 6.3%. The month-on-month core CPI increase also exceeded the expert forecast of 0.4% compiled by The Wall Street Journal (WSJ).
Despite a 2.1% decline in the energy price index, including a 4.9% month-on-month drop in gasoline prices due to falling international oil prices, sharp increases in food (0.8%) and housing costs (0.7%) pushed overall prices to a high level.
Within the energy sector, natural gas (2.9%) and electricity rates (0.4%) rose month-on-month, while food and housing costs showed year-on-year increases of 11.2% and 6.6%, respectively.
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