WASHINGTON—The Bureau of Labor Statistics is reporting that overall consumer prices rose 0.2% on a seasonally adjusted basis in September and that the overall consumer price index (CPI) grew 1.4% over the 12-month period.
"The third quarter has seen a solid recovery in consumer prices, but as in other areas of the economy, the momentum is fading as the demand-side effects of the pandemic swamp those on the supply side," said NAFCU Chief Economist and Vice President of Research Curt Long. "The FOMC’s recent shift to average inflation targeting allows the committee to tolerate more inflation than in the past before raising rates.
“With the state of the labor market and lack of price pressure, liftoff is years away,” he added.
Energy prices rose 0.8% during the month, following a 0.9% rise in August. Long noted that despite the increases, they are well-below year ago levels (-7.6%). Food growth was flat in September but is up 3.9% on a year-over-year basis.
Core prices (excluding food and energy costs) rose 0.2% in September. Year-over-year core CPI growth was 1.7%.