Washington, Consumer prices rose slightly in September as energy prices retreated after a big gain the previous month, the government reported Thursday.
The Labor Department said its closely watched consumer price index (CPI) increased 0.1 percent last month following a 0.2 percent advance in August. It was the smallest monthly gain since June.
For September, energy prices dropped 0.5 percent after a 1.9 percent surge the previous month. Food costs were flat after a tiny 0.1 percent increase in August.
Inflation has been rising this year after a prolonged period when prices remained below the 2 percent target set by the U.S. Federal Reserve (Fed). For the 12 months through September, the CPI was up 2.3 percent.
Core CPI, which excludes volatile energy and food costs, rose 0.1 percent in September, the same level as in August. It is up 2.2 percent over the past 12 months.
While inflation has been higher than before, it remains close to the Fed's annual target. But some economists worry that with labor markets so tight, wage gains will begin to accelerate, forcing businesses to charge more for their products.
The Fed has raised interest rates three times this year and signaled it will raise rates once more in 2018 in an effort to make sure that the strong economy and historically low unemployment do not trigger an unwanted surge in inflation.
Source: Saudi Press Agency