US CPI Rises 0.3% in September, 1.5% YoY

In September, the US Consumer Price Index (CPI) before seasonal adjustment showed inflation rising at a rate of 1.5% over the past year, the fastest pace since October 2014. This reading was above the 1.1% reading in August and in line with what analyst were looking for, according to a Thomson Reuters survey.

Stripping out volatile food and energy components from the CPI index, the ‘core’ rate was 2.2% in September on a year-over-year basis, compared to the August reading and consensus estimate of 2.3%.

From August to September CPI rose 0.3%, a faster pace than the August rate of 0.2%, and in line with the average analyst estimate.

The Bureau of Labor Statistics said the main reason for the rise was an increase in shelter and gasoline. The gasoline index rose 5.8%, accounting for more than half of the total increase in CPI. The shelter index rose by 0.4%, which was the largest rise since May. Food was unchanged from August.

Month-over-month, the ‘core’ CPI figure increased 0.1%, below the 0.2% estimate and the August reading of 0.3%.

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The dollar reacted lower in the minutes following the release, but quickly recovered those losses. The ICE Dollar Index still remains down on the day at 97.81, -0.8%. The December S&P 500 futures contract is currently indicating a stronger open for stocks, higher by 15.25 points, or 0.72%, to 2,138.25. December gold is trading up by 0.55% to $1,263.6 at this time while November WTI crude oil rises by 0.66% to $50.70.

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Paul is a market analyst for EconomicCalendar.com with over 7 years of experience trading forex and 20 in the financial industry. He provides actionable analysis combining both the fundamental and technical aspects of an asset. Paul specializes in indices, commodities and forex. He received his Bachelor’s degree in economics and government at Hobart College.