US inflation rises 3.7% as gasoline drives September increase

U.S. consumer prices rose faster in September, with gasoline costs accounting for more than half of the monthly increase and annual inflation exceeding economists’ forecast. The figures are likely to factor into the Federal Reserve’s next interest-rate decision, though analysts differed on whether they would prompt a rate increase this month or later in the year. The Consumer Price Index increased 0.6% from August, when it rose 0.4%, and was up 3.7% over the 12 months through September, the Labor Department’s Bureau of Labor Statistics reported Wednesday. The annual rate had been 3.4% in August. Economists had expected 3.6% annual inflation, while the monthly increase matched forecasts. Gasoline prices climbed 9.1% during September, accounting for more than half of the overall monthly CPI rise, the report said. The broader energy index increased 5.2%, after rising 2.1% in August. Core CPI, which excludes food and energy, rose 0.3% for the month and 2.6% over the year. The annual core rate was 2.4% in August. The monthly core reading matched the prior month’s increase, while both September core figures were above economists’ forecasts cited in reports.