U.S. Inflation Rose to 3.7% in September

The Bureau of Labor Statistics reported Wednesday that U.S. consumer prices rose 0.6% in September, pushing annual inflation to 3.7% from 3.4% in August. Gasoline accounted for more than half of the monthly increase, while underlying inflation also edged higher. The annual rise exceeded economists’ 3.6% forecast, while the monthly increase matched expectations and followed a 0.4% gain in August. The figures mark an acceleration in consumer prices, but do not by themselves determine the Federal Reserve’s next interest-rate decision. Gasoline prices climbed 9.1% in September. The broader energy index increased 5.2%, following a 2.1% rise in August. Gasoline prices were 34.2% higher than a year earlier, according to the report. Higher fuel costs can affect household budgets directly and raise transportation expenses for businesses. Core CPI, which excludes food and energy, rose 0.3% during the month and 2.6% over the year, up from 2.4% annually in August. The monthly core increase matched August’s pace. Shelter costs rose 0.4% in September and 3.2% from a year earlier. Food prices overall were unchanged. Grocery prices declined 0.1%, while restaurant prices rose 0.2%.