Reflecting higher prices for gasoline and shelter, the Labor Department released a report on Tuesday showing that U.S. consumer prices rose in line with economist estimates in the month of September.
The Labor Department said its consumer price index climbed by 0.3 percent in September after edging up by 0.2 percent in August.
The increase in consumer prices was partly due to a jump in energy prices, which surged up by 2.9 percent in September after coming in unchanged in the previous month.
Gasoline prices led the way higher, spiking by 5.8 percent in September following a 0.9 percent drop in August. Prices for fuel oil also jumped by 2.4 percent.
Excluding food and energy prices, the core consumer price index inched up by 0.1 percent in September after increasing by 0.3 percent in August. Economists had expected core prices to rise by 0.2 percent.
The uptick by the core index was due in large part to a 0.4 percent increase by the shelter index, the largest since May.
Along with shelter prices, prices for medical care, motor vehicle insurance, and personal care also increased in September.
The Labor Department also said the annual rate of consumer price inflation accelerated to 1.5 percent in September from 1.1 percent, while the core rate slowed to 2.2 percent from 2.3 percent.
Paul Ashworth, Chief U.S. Economist at Capital Economics, noted core inflation has been range-bound between 2.1 percent and 2.3 percent since December of last year.
"With the rate at which labor market slack is being absorbed also slowing this year, the stabilization in core inflation supports the Fed's cautious approach to normalizing interest rates," Ashworth said.
Last Friday, the Labor Department released a separate report showing that producer prices increased by slightly more than anticipated in September.
The producer price index for final demand climbed by 0.3 percent in September after coming in unchanged in August. Economists had expected prices to edge up by 0.2 percent.
Excluding food and energy prices, core producer prices rose by 0.2 percent in September after inching up by 0.1 percent in August. Core prices had been expected to show another 0.1 percent uptick.
Compared to the same month a year ago, producer prices were up by 0.7 percent in September after coming in unchanged in August.
The annual rate of growth in core producer prices also accelerated to 1.2 percent in September from 1.0 percent in the previous month.
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