The US Bureau of Labor Statistics (BLS) announced consumer inflation data for September.
Accordingly, CPI increased by 0.6 percent in September compared to the previous month. Monthly inflation increased by 0.4 percent in August. Annual CPI also increased to 3.7 percent in September, exceeding the 3.4 percent level in August.
In the economist survey conducted by Reuters, monthly inflation was expected to increase by 0.6 percent and annual inflation by 3.6 percent in September. While monthly inflation was in line with expectations, annual inflation was 0.1 points above expectations.
The rise in energy prices in September was effective in the increase in consumer inflation. Gasoline prices increased by 9.1 percent on a monthly basis, accounting for more than half of the monthly increase in the overall CPI.
The energy index increased by 5.2 percent in September. The increase in this index was 2.1 percent in August. Thus, the rate of increase in energy prices increased significantly in one month.
Gasoline prices increased by 6.5 percent in September, not seasonally adjusted. The energy index increased by 20.4 percent on an annual basis. The annual increase in gasoline prices reached 34.2 percent.
While electricity prices increased by 0.2 percent monthly in September, natural gas prices decreased by 0.3 percent.
The food index remained unchanged on a monthly basis in September. The food index had increased by 0.1 percent in each of the previous two months.
Food prices consumed at home decreased by 0.1 percent in September. While prices decreased in three of the six basic grocery food groups, there was an increase in the other three groups. Prices in the meat, poultry, fish and eggs group decreased by 0.5 percent. The decrease in beef prices was 1 percent.
While milk and dairy product prices decreased by 0.9 percent, milk prices decreased by 2 percent. Soft drink prices increased by 0.9 percent.
Food prices consumed outside the home increased by 0.2 percent in September. In this group, prices in full-service restaurants increased by 0.3 percent, and prices in limited-service restaurants increased by 0.2 percent.
Food prices increased by 2.5 percent on an annual basis. The annual increase in foods consumed at home was calculated as 1.8 percent, and the increase in foods consumed outside the home was calculated as 3.5 percent.
Core CPI, calculated by excluding food and energy prices, increased by 0.3 percent on a monthly basis in September. Core inflation increased by 0.3 percent in August.
Annual core inflation increased from 2.4 percent in August to 2.6 percent in September.
While the monthly increase rate of core inflation did not change, the increase in the annual rate was among the data showing that price pressures are not limited to energy items only.
Within the scope of the core index, housing prices increased by 0.4 percent in September. The increase in this group was 0.3 percent in August. Landlords' equivalent rent index increased by 0.3 percent and rents increased by 0.2 percent.
While hotel and out-of-home accommodation prices increased by 2 percent in September, an increase of 2.4 percent was recorded in August.
Second-hand car and truck prices increased by 0.7 percent, education prices increased by 0.6 percent, and air transportation fees increased by 1.2 percent. There was a 0.3 percent increase in clothing prices.
While health care prices increased by 0.3 percent in September, they decreased by 0.2 percent in August. Communication prices decreased by 0.2 percent in September, following the 2.3 percent increase in August.
The annual increase in the energy index was 20.4 percent in September. Gasoline prices, which increased by 34.2 percent in the last year, played an important role in this increase.
Natural gas prices increased by 5 percent and electricity prices by 4.4 percent on an annual basis.
Housing prices have increased by 3.2 percent in the last 12 months. While the annual increase in air transportation fees was 22.4 percent, education prices increased by 3.8 percent. The annual increase in entertainment prices was recorded as 2.8 percent and in healthcare services as 1.5 percent.
While food prices increased by 2.5 percent annually, the annual increase in core CPI was 2.6 percent.
September inflation data is closely followed in terms of the monetary policy of the US Federal Reserve (Fed). The rise in headline inflation due to the impact of energy prices and the annual CPI exceeding expectations are important in evaluating the course of price pressures.
However, the fact that the core CPI increased by 0.3 percent monthly and remained at the same level as the previous month requires that price movements other than food and energy be evaluated separately.
In addition to inflation, employment and economic activity data are also effective in the Fed's interest rate decisions. September CPI data is expected to be taken into account in the bank's assessments of the persistence of inflation and the future of interest policy.
