- U.S. Inflation Slows in September, Weekly Jobless Claims Increase
U.S. consumer prices rose less than expected in September, held back by a slower increase in the cost of rent and falling energy prices, as underlying inflation pressures appeared to cool slightly.
The modest price increases come despite a U.S. labor market that looks robust by most measures. A separate report on Thursday showed an unexpected but moderate rise in the number of Americans filing for unemployment benefits last week.
With the readings only slightly below what analysts expected, the inflation report is not likely to impact expectations the Federal Reserve will raise interest rates at its December policy meeting.
“Overall, these data support our baseline view of a gradual pickup in inflationary pressures,” Oxford Economics said in a note to clients.
The Consumer Price Index increased 0.1 percent last month after rising 0.2 percent in August, the Labor Department said. In the 12 months through September, the CPI increased 2.3 percent, slowing from August’s 2.7 percent advance.
Excluding the volatile food and energy components, the CPI edged up 0.1 percent for the second straight month. The so-called core index had increased 0.2 percent in May, June and July.
In the 12 months through September, the core CPI increased 2.2 percent. Economists polled by Reuters had forecast both overall and core CPI climbing 0.2 percent in September.
U.S. Treasury yields extended their fall as the data added to the view that a sell-off in U.S. and global stocks may have partly paused expectations of a more aggressive pace of Fed rate hikes. The dollar weakened to a nearly two-week low against a basket of currencies.