Economists surveyed ahead of the September Consumer Price Index (CPI) report forecast that consumer prices increased by 0.6% during the month, compared with a 0.4% rise in August. The annual inflation rate was projected to climb to 3.6%, up from 3.4%.
Gasoline prices were a major contributor to the expected increase, rising 7.1% in September, according to data from the US Energy Information Administration. Economists estimated that fuel costs alone could account for approximately 0.3 percentage points of the monthly inflation rate. Food prices were also expected to rise.
However, underlying inflationary pressures appeared more moderate. Core CPI, which excludes food and energy, was forecast to increase by 0.2% in September, compared with 0.3% in August. The annual core inflation rate was expected to edge up to 2.5% from 2.4%.
Higher energy costs remain a concern because they can gradually increase transportation, airline and food distribution expenses, potentially pushing up prices across other sectors.
The inflation report is also expected to influence the US Federal Reserve’s interest rate decision. Weaker employment growth and moderating underlying price pressures have reduced expectations of another rate increase in October, although persistent energy inflation could complicate the central bank’s efforts to control prices.
For American households, the immediate concern remains whether rising fuel and food costs will continue to outpace income growth.
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