The US Consumer Price Index continues to increase (September 2023)

The US Consumer Price Index (CPI) continued its ascent, rising by 3.7% in September compared to the same period last year, driven by surging housing rents and gasoline prices.

This information was recently released by the US Bureau of Labor Statistics on October 12. The figure surpassed earlier economic expert forecasts by 0.1%. It marks the second consecutive month of CPI growth, following a deep decline over the past year.

September’s US consumer prices surged amid the backdrop of soaring housing rental costs and the highest gasoline prices of the year, placing additional pressure on consumers. However, core inflation (excluding volatile energy and food prices from the basket of goods) slowed down to 4.1% compared to the same period in 2022.

With the newly released data reinforcing market expectations - the Federal Reserve (Fed) is not expected to raise interest rates next month.

Financial analysts also predict that the Fed will maintain the current interest rates at the upcoming meeting on November 31. This viewpoint aligns with the Fed officials’ recent statement on October 9, suggesting that the central bank might refrain from further interest rate hikes as long-term US government bond yields skyrocket.

Persistent high inflation has exerted pressure on Americans for over two years. Since March last year, the Fed has raised interest rates 11 times to curb inflation.

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