US Inflation Rises 3.7% in September amid High Costs for Rent and Gasoline

U.S. consumer prices rose 3.7% year-on-year in September amid rising costs for rent and gas prices, but showed signs that it could slow down, which supported the Wall Street that was expecting the Federal Reserve to not raise interest rates in the November meeting.

The reading was relatively in line with expectations that forecast 3.6% growth in September. Meanwhile, prices grew 0.4% on a monthly basis, just slightly higher than 0.3% expectations from the market.

Core inflation, which excludes volatile food and energy prices, rose 4.1% YoY and 0.3% month-on-month. Both were in line with expectations. Prices of used cars fell in September, but the cost of shelter increased amid high rents. 

Meanwhile, the Labor Department reported that initial claims for unemployment benefits were unchanged at a seasonally adjusted 209,000 for the week ended October 7. The figure was close to economists’ forecast for 210,000 claims for the latest week.