US releases grim economic data – RT Business News
The country’s key consumer price indicator hit its highest level in four decades, official data shows
The core consumer price index (CPI) in the United States, which excludes food and energy, rose 6.6% in the year to September, marking its highest level since 1982, reports the Bureau of Labor Statistics.
Data released on Thursday showed the headline CPI rose 0.4% in September from August, double the 0.2% forecast by analysts, although the annual rate slowed slightly to 8.2%. against 8.3%.
The benchmark is considered a better tool for monitoring underlying inflationary pressures, as food and energy costs can fluctuate from month to month.
The report said inflation for gasoline and food has generally eased from levels seen earlier this year. Meanwhile, housing costs led the way, with the related index climbing 0.7% in the month.
Transportation services saw prices jump 1.9% last month, posting the biggest one-month increase among the CPI’s core components. They were followed by rising costs for medical services.
Economists say the report signals that inflation is a persistent problem even amid sharp interest rate hikes from the US Federal Reserve. It will determine how far the regulator will push its aggressive tightening and keep rates high until there are signs that inflation is easing.
US stocks briefly dipped after the inflation report, but then recovered from early session declines.
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