US Sept consumer inflation rises less than expected

US consumer inflation continued to heat up in September but by less than expected, according to official data published on Oct 24, nine days late because of the ongoing government shutdown.

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However, the acceleration is unlikely to dim expectations of another rate cut from the Federal Reserve next week as it looks to support the flagging labour market.

The consumer price index (CPI) picked up to 3 per cent in September, accelerating from 2.9 per cent on a year-on-year basis a month earlier, the Labour Department said in a statement.

Prices rose 0.3 per cent from a month earlier.

Both the annual and monthly inflation data came in slightly below the median forecast of economists surveyed by Dow Jones Newswires and The Wall Street Journal.

A significant reason for the monthly increase came from the petrol index, which jumped 4.1 per cent between August and September.

The food index rose by a more modest 0.2 per cent, spurred by a 0.3 per cent rise in the cost of food at home.

Underlying so-called “core” inflation, excluding volatile food and gas prices, also came in below expectations at 3 per cent, the Labour Department said.