September CPI: Inflation remained well above the Fed’s target

Inflation remained high in September and remained well above the Federal Reserve’s target rate as policymakers prepare to meet next week to decide on their upcoming interest rate move.

The Bureau of Labor Statistics said Friday Consumer Price Index (CPI) — a broad measure of how much everyday goods like gasoline, groceries and rent cost — rose 0.3% in September from the previous month, while rising to 3% year over year from 2.9% in August.

The monthly figure was in line with expectations of economists polled by LSEG, while the year-on-year figure was slightly lower than expected.

So-called core prices, which exclude volatile measures of gasoline and foodstuffs to better assess price growth trends, rose 0.2% from the previous month and 3% from a year ago. Both numbers were slightly cooler than economists expected.

High inflation has created severe financial pressures in recent years on most American families, who have been forced to pay more for daily necessities like food and rent. Rising prices are especially difficult for low-income Americans, because they tend to spend more of their already stretched paychecks on necessities and have less flexibility to save money.

Food prices rose 0.2% in September and rose 3.1% year-on-year. The Food at Home index was up 0.3% month-over-month and was 2.7% higher than a year ago, while the Food Away from Home index was up 0.1% from the previous month and 3.7% higher than a year ago.

The meat, poultry and fish index rose 0.8% in September, an increase of 6% over last year. Beef and veal prices increased by 1.2% during the month, and by 14.7% compared to last year. Over the past year, pork prices rose by 1.6% and poultry prices by 1.4%, while fish and seafood prices rose by 2.1% since last September.

Egg prices decreased by 4.7% on a monthly basis, and decreased by 1.3% over the past year. The fruit and vegetable index showed prices remaining stable in September and rising by 1.3% year-on-year.

Energy prices rose 1.5% in September after rising 0.7% in August, and are 2.8% higher than a year ago. The gasoline index rose 4.1% in September, despite falling 0.4% from a year ago. Electricity prices fell by 0.5% during the month, and rose by 5.1% over the past year.

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