U.S. consumers faced accelerating prices in September, up 3.6% year over year
U.S. inflation accelerated in September, with prices rising 3.6% from a year earlier. Goods prices climbed 3.9% year over year and services 3.5%; gasoline costs also surged. Consumer spending rose 0.5% from August, but was unchanged after inflation adjustment, the Bureau of Economic Analysis said. The report supported economists’ expectations of a Federal Reserve rate increase in December.
More context
U.S. inflation accelerated in September as consumers paid more for gasoline and other goods, Reuters reported. Prices rose 3.6% from a year earlier, with goods prices up 3.9% and service prices up 3.5%. The faster pace supported economists’ expectations of a Federal Reserve interest-rate increase in December, though no decision by the Fed was reported.
Higher prices lifted consumer spending 0.5% in September, after an unrevised 0.9% rise in August, the Bureau of Economic Analysis said. Spending accounts for more than two-thirds of economic activity. Adjusted for inflation, spending was unchanged in September, leaving consumer spending on a weaker growth trajectory entering the fourth quarter. Spending increased at a 3.8% rate in the July-September quarter.
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Reporting
- Mid-Michigan NOW — Inflation heats up as rising costs threaten to spread beyond ...
- thedailyrecord.com — Inflation heats up in September; consumer spending rises
Verifier’s note
The Daily Record reports that U.S. inflation accelerated in September as gasoline and other goods became more expensive. Mid Michigan Now also reports September inflation rising, with costs threatening to spread beyond energy.