U.S. inflation tops expectations at 3.7%; gasoline prices surge 9.1%

[Financial News, New York—Lee Byung-chul, correspondent]  U.S. consumer prices in September exceeded market expectations as energy prices surged amid the war with Iran. Gasoline prices soared more than 9% in a month, driving the overall rise in prices. With core inflation also coming in higher than expected, the possibility of a further interest rate hike by the Federal Reserve (Fed) is gaining ground.
According to the U.S. Department of Labor’s Bureau of Labor Statistics (BLS) on the 14th (local time), the Consumer Price Index (CPI) rose 0.6% in September from the previous month, its largest increase in five months. Year over year, it rose 3.7%, exceeding market expectations of 3.6%.
Core CPI, which excludes volatile food and energy prices, rose 0.3% from the previous month and 2.6% from a year earlier. Both figures exceeded market expectations of 0.2% and 2.5%, respectively, by 0.1 percentage point.
Energy prices were the main driver of inflation. As the war between the United States and Iran, which began in late February, dragged on, the energy price index surged 5.2% in September from the previous month. Gasoline prices in particular soared 9.1%, accounting for about half of the overall increase in the CPI.
Food prices held steady from the previous month, while housing costs rose 0.4% and prices for used cars and trucks increased 0.7%.
The surge in energy prices, along with continued pressure on service prices such as housing costs, is seen as making it even harder for the Fed to achieve its price-stability goal. Markets are watching for the possibility that the Fed will raise interest rates again before the end of the year.




[email protected] Lee Byung-chul, correspondent Reporter