ARLINGTON, Va.—Overall consumer prices rose 0.5% in September – the strongest growth since January. NAFCU Chief Economist and Vice President of Research Curt Long attributed the increase to soaring gasoline prices.
"Refining activities were disrupted by Hurricane Harvey, which led to a 13.1% surge in gasoline prices during the month," Long said in a NAFCU Macro Data Flash report. "This marks the largest gas price increase since 2009 and accounts for about three-quarters of September's overall (consumer price index) increase."
Long noted core inflation growth remained weak in September, "to the dismay of Fed officials looking for evidence of stronger inflation ahead of a likely rate hike in December." However, he still expects the Fed to move forward with a quarter-point rate increase because of a strong labor market.
Data published Friday by the Bureau of Labor Statistics showed overall consumer prices rose 0.5% in September. Year over year, the overall consumer price index (CPI) rose 2.2% in September after showing 1.9% growth in August, Long said.
Core prices (excluding food and energy costs) increased 0.1% in September compared with the previous month. Year-over-year core CPI growth remained at 1.7%.
Energy prices rose 6.1% in September – a significant jump from August and the largest gain since 2009. From a year ago, energy prices were up 10.2%. Food prices increased 0.1% in September, the same as August. Year over year, food prices were up 1.2%, Long said.
Meanwhile, CUNA’s October edition of the CUNA Economic Update is similarly optimistic.
“The economy continues to grow along with credit union membership, loans and savings,” said CUNA economist Jordan van Rijn. “This month we focused on the effects of credit unions on the greater economy. Member and non-member benefits, how credit unions serve people of more ‘modest means’ and how non-financial benefits have an impact on the national economy. Understanding how is a key to growing and supporting the movement.”