OAN’s Stephanie Stahl
11:20 AM – Thursday, October 12, 2023
The inflation rate in the United States increased to 3.7% in September, surpassing economists’ forecasts, according to new data from the Bureau of Labor Statistics.
The increased inflation has placed an additional strain on consumers, who are already grappling with skyrocketing prices on essential items.
The Federal Reserve is reportedly contemplating raising interest rates again before the end of the year in an effort to curb inflation.
The Consumer Price Index reading, which gauges inflation by monitoring changes in the prices of everyday goods and services, reflects the reading in August and slightly exceeds the economists’ projected 3.6% increase.
Meanwhile, the federal agency noted that a 0.2% rise in shelter costs represented more than half of the overall increase.
The CPI data also revealed that the gasoline index saw a significant 2.1% increase, making a substantial contribution to the overall CPI.
Last month, gasoline prices soared with a remarkable 10.6% surge, as reported by AAA, with the average cost for a gallon of gas reaching $3.85.
According to the latest available data posted on Thursday, the average price for a gallon of gas in the United States is now $3.65.
However, food price inflation has reached its lowest level since March 2021, matching the overall inflation rate of 3.7%. This marks the first instance since early 2022 that food prices have not exceeded the general inflation rate, as per CPI data.
Grocery price increases have slowed, coming in at an annual rate of 2.4%.
Economists say that the underlying trends are progressing in the direction desired by the Federal Reserve, which has been actively engaged in a series of rate hikes to combat inflation since March 2022.
Following the peak in inflation last summer, the central bank has been diligently raising rates. The Fed increased rates by another 25 basis points to a 22-year high in August in hopes of an economic slowdown.
In the last policy meeting that was held last month, Fed officials unanimously opted to maintain this historically high rate steady for the second time this year.
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