United States: Inflation flat in September, persistently low price pressures complicate Fed's interest rate decision
October 16, 2015
In September, consumer prices dropped 0.2% over the previous month in seasonally-adjusted terms, which followed the 0.1% decrease seen in August and marked an eight-month low. The print was in line with market expectations and was mainly driven by lower prices for energy, including gasoline. September’s result marked the second straight monthly decline, which will further complicate the Federal Reserve’s plans for lifting interest rates in the near future.
Inflation was flat in September, which was below August’s 0.2% increase and marked the lowest level in four months. Core consumer prices, which exclude food and energy prices, increased 0.2% in September, which was above the previous month’s 0.1% reading. The figure was also higher than the 0.1% increase expected by the market. Annual average core inflation inched up from 1.7% in August to 1.8% in September.
Author: Carl Kelly, Economist