Prices paid by consumers for various goods and services were found to have risen at a slightly faster rate than expected in September, making inflation more of a focus for policymakers.
The consumer price index, a key gauge of inflation, rose 0.4% in the month and 3.7% from a year earlier, according to a Labor Department report on Thursday. This data is slightly higher when compared to the Dow Jones estimates which are 0.3% and 3.6% respectively.
Excluding volatile food and energy prices, the core CPI Index rose 0.3% in the month and 4.1% in the 12-month period, both in line with expectations. Policymakers focus more on these core numbers because they tend to be better determinants of long-term trends.
In line with recent trends, the cost of living is a major factor in increasing inflation. The cost of living, accounting for around a third of the CPI, rose by 0.6% month-on-month and 7.2% from a year earlier.
Energy costs rose by 1.5%, including increases of 2.1% in gasoline prices and 8.5% in cooking oil, and food rose by 0.2% for the third month in a row.
The increase in the price of services, which is considered a factor by researchers for the long-term direction of inflation, also recorded an increase of 0.6% except for energy services, and increased by 5.7% in the 12-month period.
