US: CPI rises 0.3% in September, up 1.5% YoY

The Consumer Price Index increased 0.3% in September on a seasonally adjusted basis, the US Bureau of Labor Statistics reported today. Over the last 12 months, the all items index rose 1.5%, its  largest 12-month increase since October 2014. Both readings matched analysts’ expectations.

Meanwhile, the core CPI, which excludes, volatile categories such as food and energy, rose 0.1% in September after a 0.3% increase in August. Over the 12-months to September, core CPI rose 2.2%, slightly below expectations of 2.3% advance..

US inflation figures are closely watched to assess the likelihood of another rate hike by the Fed before year-end. While the employment sector has shown signs of improvement, inflation remains subdued well below the Fed’s target of 2.0%.  The Fed's preferred measure shows overall prices rose 1% in the year through August while core prices climbed 1.7%.