At least there is one thing that’s not a worry when it comes to the American economy…inflation.

The U.S. Labor Department’s Consumer Price Index increased 0.2% in September from the month before. The hike follows a 0.1% increase in August. Higher fuel, electricity and other energy costs rose 0.8%, making up about half the overall September increase.

When the volatile food and energy sectors are removed, the September increase was just 0.1% for the second consecutive month, amounting to a 1.7% increase over the past 12 months.

Over the past year consumer prices have increased 1.2%, down from the annual increase of 1.5% as of August and is the smallest 12 month gain since April.

Service costs rose 0.3% in September and 0.2% excluding energy costs. Housing costs rose 0.3% while food and beverage prices and other goods and services costs were all unchanged for the month, despite a 0.1% rise in tobacco. Transportation costs rose 0.4%, medical care prices rose 0.3% and education and communications costs rose 0.1%, thanks to a 0.4% increase in personal computer prices. Commodities costs rose 0.1% in September, down 0.7% year-over-year. 



On the weaker side, recreation prices fell 0.1% and apparel prices dropped 0.5%.

“The Federal Reserve’s fear of inflation remains sidelined amid waning price pressures keeping the annual growth rate well below the Fed’s threshold of 2.5%,” said Lindsey M. Piegza,
managing director and chief economist at the investment firm Sterne Agee.

About the author
Evan Lockridge

Evan Lockridge

Former Business Contributing Editor

Trucking journalist since 1990, in the news business since early ‘80s.

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