In a development that could pave the way for further interest rate reductions by the Federal Reserve, consumer prices in September rose less than anticipated, as revealed by government data on Friday.
This trend suggests that tariffs are not significantly impacting household budgets, offering a glimmer of relief for American consumers.
According to Breitbart, the consumer price index saw a modest increase of 0.3 percent last month, a slight dip from the 0.4 percent rise recorded in August. This figure fell short of economists' predictions, which had pegged the increase at 0.4 percent. On an annual basis, consumer prices have climbed 3.0 percent, just below the forecasted 3.1 percent.
Core prices, which exclude volatile food and energy costs, rose by 0.2 percent, also undercutting the anticipated 0.3 percent rise. Over the past year, core prices have increased by 3.0 percent.
Food inflation, which had surged in August, showed signs of easing in September. Grocery prices rose by 0.3 percent, a decrease from the previous month's 0.6 percent hike. Compared to the same period last year, grocery prices have risen by 2.7 percent. Dining out costs saw a minimal increase of 0.1 percent, a slowdown from August's 0.3 percent rise, with restaurant prices up 3.7 percent year-over-year.
Energy costs emerged as a significant inflationary factor in September, with a 1.5 percent increase for the month and a 2.8 percent rise compared to the previous year. Gasoline prices experienced a notable 4.1 percent surge in September, although they remain 0.5 percent lower than a year ago.
The automotive sector displayed mixed trends. New vehicle prices edged up by 0.2 percent in September, marking a modest 0.8 percent increase over the past year. Meanwhile, used car prices declined by 0.4 percent after previous gains, yet they are still up 5.1 percent compared to last year.
Apparel prices experienced a 0.7 percent increase in September but have decreased by 0.1 percent over the past year. Core services prices, excluding energy services, rose by 0.2 percent, with an annual gain of 3.5 percent. Shelter costs, encompassing rent and owner-occupied home estimates, increased by 0.2 percent and are up 3.6 percent annually.
In the realm of household goods, appliance prices climbed by 0.8 percent, with a 1.3 percent increase over the year. Major appliance prices rose by 0.4 percent in September but have decreased by 0.6 percent annually. Furniture prices saw a 0.2 percent rise, up 3.0 percent from the previous year.
Computers and smart home assistants experienced a 0.2 percent increase, yet prices have fallen by 0.7 percent over the year. Smartphone prices dropped by 2.2 percent for the second consecutive month, reflecting a substantial 14.9 percent decline compared to last year.
Television prices decreased by 1.1 percent in September and have fallen by 6.0 percent over the past year. These figures underscore the nuanced landscape of consumer pricing, where certain sectors experience inflationary pressures while others see price reductions, reflecting the complexities of the current economic environment.
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