US Inflation Rate Holds Steady at 1.7%

The US annual inflation rate was unchanged at 1.7 percent in September 2019, slightly below market consensus of 1.8 percent, as a pick up in food inflation was offset by a further decline in energy prices.
BLS | Joana Ferreira | joana.ferreira@tradingeconomics.com
10/10/2019 12:45:09 PM
Food inflation edged up to 1.8 percent in September from 1.7 percent in August, as costs of food at home rose at a faster pace (0.6 percent vs 0.5 percent). Additional price increases were recorded for transportation services (0.8 percent vs 0.9 percent); medical care services (4.4 percent vs 4.3 percent); shelter (3.5 percent vs 3.4 percent); new vehicles (0.1 percent vs 0.2 percent); and used cars and trucks (2.6 percent vs 2.1 percent).

Energy prices tumbled 4.8 percent in September, following a 4.4 percent drop in the previous month. Within energy commodities, gasoline cost declined 8.2 percent (vs -7.1 percent in August) and fuel oil went down 8.5 percent (vs -8.4 percent in August). Within energy services, utility (piped) gas service cost slid 2.7 percent (vs -3.5 percent in August) and electricity prices rebounded 0.7 percent (vs -0.1 percent in August). Other declines were seen in prices of apparel (-0.3 percent vs 1.0 percent) and medical care commodities (-0.3 percent vs 0.1 percent).

The core inflation rate, which excludes volatile items such as food and energy, was also flat at one-year high of 2.4 percent, in line with market consensus.

On a monthly basis, consumer prices were unchanged in September, after a 0.1 percent gain in August and below market forecasts of 0.1 percent. Increases in shelter and food prices were offset by declines in energy and used cars and trucks costs.

US Inflation Rate Holds Steady at 1.7%