Michelle ThompsonAccording to the Labor Department, housing is the main driver of monthly gains, accounting for more than half of the growth.
According to official data released on Thursday, annual consumer inflation in the US came in at 3.7% in September, slightly higher than market expectations.
The data was expected by the market to demonstrate a 3.6% growth year over year.
In August, the consumer price index (CPI), which tracks changes in consumer prices for goods and services, indicated a 3.7% annual increase.
The number, however, still represents a significant drop from last June’s 9.1% annual gain, which was the highest since November 1981.
The CPI increased by 0.4% on a monthly basis in September compared to the previous month, which was somewhat higher than the 0.3% market consensus and followed a 0.6% increase in August.
“The index for shelter was the largest contributor to the monthly all items increase, accounting for over half of the increase,” according to a Labor Department statement. “An increase in the gasoline index was also a major contributor to the all items monthly rise.”
Following a 0.3% increase in August, the core CPI, which excludes volatile food and energy prices, increased by 0.3% in September, in line with market expectations.
After increasing by 4.3% year over year in August, core CPI increased by 4.1% in September, also in line with market expectations.
“The energy index decreased 0.5 percent for the 12 months ending September, and the food index increased 3.7 percent over the last year,” stated the statement.
