September Inflation Accelerates to 3.7% as Gasoline Surges

U.S. consumer prices rose 0.6% from August to September, lifting annual inflation to 3.7% and putting renewed attention on the Federal Reserve’s interest-rate plans. The Bureau of Labor Statistics reported Wednesday that gasoline prices drove more than half of the monthly increase, while core inflation also firmed over the year. The annual Consumer Price Index increase was up from 3.4% in August and exceeded economists’ 3.6% forecast. The monthly rise matched expectations and followed a 0.4% increase in August. The overall figures show inflation accelerating, though the report alone does not determine the Federal Reserve’s next decision. Gasoline prices climbed 9.1% in September, the BLS said, and the broader energy index rose 5.2% after increasing 2.1% in August. Core CPI, which excludes food and energy, increased 0.3% for the month and 2.6% over the year. The annual core rate had been 2.4% in August. Food prices were unchanged overall, according to the report. The September data arrive after the Federal Reserve raised its benchmark interest-rate range by a quarter percentage point last month, to 3.75% to 4.00%.