US consumer prices increase more than expected in September, jobless claims rise

US consumer prices increase more than expected in September, jobless claims rise

US consumer prices increased more than expected in September and underlying inflation pressures continued to build up, reinforcing expectations that the Federal Reserve will deliver a fourth 75-basis points interest rate hike next month.

The consumer price index rose 0.4 percent last month after gaining 0.1 percent in August, the Labor Department said on Thursday. Economists polled by Reuters had forecast the CPI climbing 0.2 percent.

For all the latest headlines follow our Google News channel online or via the app.

In the 12 months through September, the CPI increased 8.2 percent after rising 8.3 percent in August. The annual CPI peaked at 9.1 percent in June, which was the biggest advance since November 1981.

Despite the continued moderation as supply chains ease and oil prices retreat from the highs seen in the spring, inflation is running way above the Fed’s 2 percent target.

Gasoline prices have likely bottomed following last week’s decision by the Organization of Petroleum Exporting Countries and allies to cut oil production. Russia’s war against Ukraine poses an upside risk to food prices.

Stubbornly high inflation and a tight labor market allow the US central bank to maintain its aggressive monetary policy stance for a while. The government last week reported solid