US consumer prices rose in September on higher oil costs
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WASHINGTON — Higher energy costs fueled U.S. consumer prices in September, but overall inflation remained in check as it has for the past several years.
The Labor Department said Tuesday that consumer prices increased 0.3
Inflation has stayed relatively low despite job growth that has brought more workers into the economy. Until last month, the modest levels of inflation largely came from muted oil prices and a stronger dollar.
With inflation a minimal risk, the Federal Reserve has held down short-term interest rates in hopes of spurring more borrowing and spending to boost economic growth. The markets anticipate that the Fed will keep rates steady at its November meeting and then hike rates at its upcoming meeting in December, which would be the second increase in a year.
"Nothing here to push the Fed to spring into action," Jennifer Lee, a senior economist at BMO Capital Markets, said about the inflation report.
But the low levels of inflation have also limited incomes for older Americans who receive Social Security. Their annual increase in payments will be 0.3
Core inflation, which excludes the volatile categories of food and energy, rose 0.1
Prices fell last month for cars and clothing. But they increased 0.4
Over the past 12 months, core inflation has increased 2.2