WASHINGTON Oct 18 U.S. consumer prices rose in
September as the cost of gasoline and rents surged, suggesting a
steady build-up of inflation pressures that could keep the
Federal Reserve on track to raise interest rates in December.
The Labor Department said on Tuesday its Consumer Price
Index increased 0.3 percent last month after rising 0.2 percent
in August. In the 12 months through September, the CPI
accelerated 1.5 percent, the biggest year-on-year increase since
The CPI increased 1.1 percent in the year to August.
Economists had forecast the CPI rising 0.3 percent last
month and jumping 1.5 percent from a year ago.
But underlying inflation showed signs of moderating amid a
slowdown in the pace of increases in healthcare costs after
recent robust gains. The government revised prices for
prescription drugs from May through August this year as
incorrect data had been used to calculate price changes.
The so-called core CPI, which strips out food and energy
costs, gained 0.1 percent last month after climbing 0.3 percent
in August. That slowed the year-on-year increase in the core CPI
to 2.2 percent following a 2.3 percent rise in August.
The retreat in the monthly core CPI reading will probably do
little to change the view that the Fed will raise interest rates
at its December meeting.
(Reporting by Lucia Mutikani; Editing by Andrea Ricci)