Business · Economy · 16 hrs ago
US inflation expected to rise in September as gasoline prices climb
US consumer prices are expected to have risen faster in September, mainly because gasoline became more expensive.
Economists surveyed by Bloomberg forecast a 0.6% monthly increase, up from 0.4% in August and the largest rise in five months.
But prices excluding food and energy are expected to rise more slowly, by 0.2% for the month.
That would suggest higher fuel costs have not yet pushed up prices for most other goods and services.
After slower job growth in September and softer underlying inflation, the Federal Reserve may have less reason to raise interest rates at its October 28 meeting.
The figures are due Wednesday, alongside other US economic updates, including a report on regional business conditions.
Separate data due Thursday are expected to show slower retail sales growth in September.
US inflation is expected to accelerate in September, mainly because gasoline prices rose.
Economists surveyed by Bloomberg forecast a 0.6% increase in the consumer price index, up from 0.4% in August.
Core inflation, which excludes food and fuel, is expected to rise 0.2%, indicating more moderate price pressures.
The report may support expectations that the Federal Reserve will not raise interest rates this month.
Higher fuel costs have weighed on consumer confidence, although households have continued to spend.
- Who
- US consumers and the Federal Reserve are central to the story.
- What
- US inflation is expected to rise in September as gasoline prices climb, while core price pressures are expected to moderate.
- When
- The expected data cover September and are due this week.
- Where
- United States.
- Why
- Higher gasoline prices are expected to push up overall inflation, while softer core inflation may reduce pressure for a Federal Reserve rate increase.
This story does not have two clearly opposing sides.
Gasoline prices at the pump approached $4.50 a gallon in late September, their highest level in four months, and with jet fuel costs also rising because of the conflict in the Middle East, the report may also show airfares accelerating.
US gasoline prices rose, and the consumer price index had increased 0.4% in August.
The US Bureau of Labor Statistics is scheduled to release September consumer price data.
Data on existing-home sales for the previous month are due from the National Association of Realtors.
Government data on September retail sales are scheduled for release.
- Forecast CPI increase
- 0.6% in September, compared with 0.4% in August
- Forecast core CPI increase
- 0.2% month over month
- Forecast annual core CPI
- 2.5%
- Gasoline price
- Nearly $4.50 per gallon in late September
- Federal Reserve rate decision date
- October 28
Sources
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