US CPI Fell 0.2% in Sept.
World Economy

US CPI Fell 0.2% in Sept.

US consumer prices recorded their biggest drop in eight months in September as the cost of gasoline fell, but a steady pick-up in underlying price pressures should allay fears that a disinflationary trend was reasserting itself, CNBC reported.
The Labor Department said on Thursday its Consumer Price Index fell 0.2% last month after slipping 0.1% in August. In the 12 months through September, the CPI was unchanged for the first time in four months after rising 0.2% in August.
Economists polled by Reuters had forecast the CPI falling 0.2% in September and dipping 0.1% from a year ago. The so-called core CPI, which strips out food and energy costs, rose 0.2% after ticking up 0.1% in August.
Low inflation, which has persistently run below the Federal Reserve’s 2% target, is a major hurdle to an interest rate hike this year. Policymakers who are divided on when to tighten monetary policy could take comfort in last month’s increase in the core PPI.
Expectations of a lift-off in the US central bank’s short-term interest rate have been dealt a blow by an abrupt slowdown in job growth in the last two months and softening economic activity because of a strong dollar, lower oil prices and a weakening global economy.
In the 12 months through September, the core CPI increased 1.9%, the largest increase since July 2014, after rising 1.8 % in August. The Fed tracks the personal consumption expenditures price index, excluding food and energy, which is running well below the core CPI.
Last month, gasoline prices fell 9.0%, the biggest drop since January, after declining 4.1% in August. Food prices increased 0.4 %, the largest increase since May 2014, after rising 0.2% the prior month. The rental index increased 0.4%, after rising 0.3% in August.

Short URL : https://goo.gl/DJMF09
  1. https://goo.gl/47vrmx
  • https://goo.gl/bh4Skw
  • https://goo.gl/ldkwrB
  • https://goo.gl/lMF4E8
  • https://goo.gl/Mn8Mbc

You can also read ...

Blue Economy Movement Gaining Traction in Africa
An increasing number of African countries are now embracing...
Japanese Prime Minister Shinzo Abe (C) speaks as European Commission President Jean-Claude Juncker (L) and European Council President Donald Tusk listen during  a joint press conference at Abe’s official residence in Tokyo on July 17.
Japan and the European Union signed a landmark deal on Tuesday...
The trade war began when Donald Trump introduced tariffs on imported steel and aluminum.
Rising trade tensions between the United States and the rest...
There are indications that investments in digital economy will...
Striking Amazon Employees in Europe Demand Better Working Conditions
Thousands of workers walked off their jobs on Tuesday at...
The parliament approved a five billion pound start-up capital for the fund called “Egypt Fund”.
Egypt is setting up a sovereign wealth fund with a capital of...
SNB to Raise Rates in 2019
The Swiss National Bank will continue tracking its eurozone...
Canada Growth Robust, Housing Sector Cooling
On July 13, the executive board of the International Monetary...