Consumer prices in the U.S. rose in line with economist estimates in the month of September, according to a report released by the Labor Department on Wednesday.
The Labor Department said its consumer price index rose by 0.2 percent in September after inching up by 0.1 percent in August. The modest price growth matched economist estimates.
The monthly increase in consumer prices was partly due to a rebound by energy prices, which rose by 0.8 percent in September after dipping by 0.3 percent in August.
All of the major energy component indexes increased in September, with natural gas prices showing a notable rebound after falling sharply in the previous month.
Meanwhile, the report also said food prices came in unchanged in September after inching up 0.1 percent in August.
The Labor Department said decreases in prices for fruits and vegetables and non-alcoholic beverages offset increases in other major grocery store food group indexes.
The core consumer price index, which excludes food and energy prices, edged up by 0.1 percent for the second consecutive month. Economists had expected core prices to rise by 0.2 percent.
The uptick by the core index was partly due to an increase in the cost of shelter, which rose by 0.2 percent for the fourth month in a row.
Prices for medical care, new vehicles, and airline fares also increased, while prices for apparel and recreation declined.
Compared to the same month a year ago, consumer prices increased by 1.2 percent in September, slower than the 1.5 percent annual growth seen in August.
The Labor Department said the annual rate of consumer price growth in September reflected the smallest 12-month increase since April.
Core consumer prices increased an annual rate of 1.7 percent in September, reflecting a modest slowdown from the 1.8 percent growth reported for August.
"Looking ahead, the fall in gasoline prices this month suggests that CPI inflation may fall to 1.0% in October," said Paul Dales, Senior U.S. Economist at Capital Economics. "But we expect that core inflation will remain close to its current rate of 1.7% for the foreseeable future."
"None of this means the Fed will alter policy at today's meeting," he added. "And core inflation of just below 2% should not prevent tapering as and when the Fed decides that the labor market is strong enough and the fiscal risks have faded, which might not be until March."
On Tuesday, the Labor Department released a separate report showing a modest decrease in producer prices in September, with a notable drop in food prices offsetting an increase in energy prices.
The Labor Department said its producer price index edged down by 0.1 percent in September following a 0.3 percent increase in August. The drop surprised economists, who had expected prices to increase by about 0.2 percent.
Excluding food and energy prices, the core producer price index inched up by 0.1 percent in September after coming in unchanged in the previous month. The modest increase matched economist estimates.
Producer prices saw an annual rate of growth of just 0.3 percent in September, while core producer prices were up by 1.2 percent compared to the same month a year ago.
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Forex News
May 22, 2026 14:46 ET Minutes of the latest Fed policy session was the highlight of the week along with survey data on the U.S. housing market. In Europe, survey data signaled the trends in the euro area private sector. Further, consumer price inflation data from the U.K. was in focus. In Asia, various economic indicators from China drew attention to the health of the economy.