US CPI Growth Slowed In September
US consumer prices rose less than expected last month. The Labor Department reported, that consumer price index (CPI) rose 0.1% last month, compared to expectations for a gain of 0.2%. On annual basis, CPI gained 2.3%, below forecasts for a reading of 2.4% and down from 2.7% in August.
Core CPI, a key gauge of underlying consumer price pressures that excludes food and energy costs, increased by 0.1% from a month earlier, below forecasts for a gain of 0.2%. The annual increase in the core CPI was 2.2%. Economists had forecast an increase of 2.3%.
Still, US CPI data pointed to a steady increase in inflation, keeping pressure on the Federal Reserve to stick to its plan for gradual interest rate hikes. The Fed is widely expected to raise interest rates for the fourth time this year at its December meeting and three more rate hikes are awaited in 2019.