Inflation Accelerates to 3.7% as Gasoline Prices Surge

U.S. consumer prices increased at a faster pace in September as a sharp rise in gasoline costs pushed annual inflation to 3.7%, up from 3.4% in August, according to the Bureau of Labor Statistics.

The Consumer Price Index rose a seasonally adjusted 0.6% for the month, following a 0.4% increase in August.

Gasoline prices jumped 9.1%, accounting for more than half the monthly increase. Overall energy prices climbed 5.2%, accelerating from August’s 2.1% gain, and were 20.4% higher than a year earlier.

Core CPI, which excludes food and energy, increased 0.3% for a second consecutive month. Annual core inflation rose to 2.6% from 2.4% in August, indicating that the acceleration extended beyond energy.

Shelter costs increased 0.4%, following a 0.3% rise in August. Other categories posting monthly increases included recreation, used cars and trucks, education, airline fares, medical care and apparel.

Food prices were unchanged overall. Grocery prices declined 0.1%, offsetting a 0.2% increase in food away from home. Over the past year, food prices increased 2.5%.

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Bureau of Labor Statistics

About Joe Palmisano

Joe Palmisano is editorial director of Connect Money, where he oversees daily coverage of alternative assets, direct investments, financial advisory and the economy. He brings three decades of experience as a financial journalist, analyst and portfolio manager. Before joining Connect Money, Palmisano wrote for The Wall Street Journal, covering foreign exchange, global fixed-income and equity markets. He later served as a senior research analyst and portfolio manager, producing market analysis and managing foreign exchange and U.S. equity portfolios for FX Concepts. His work has also appeared in SFO Magazine and CMT Association publications. Palmisano earned a bachelor’s degree in finance from The American University and holds the Chartered Market Technician (CMT) designation and is a member of the CFA Institute.

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