US consumer prices accelerate in September on costlier gasoline; core CPI firmer
TLT•The CPI rose 0.6% in September and 3.7% year over year, while core CPI increased 0.3% for the month and 2.6% over 12 months. Gasoline prices surged 7.1%, and the Senior Citizens League projected a 3.5% Social Security cost-of-living adjustment for 2027.
1. Inflation picks up
The Consumer Price Index rose 0.6% in September after gaining 0.4% in August, and was up 3.7% from a year earlier. Economists had forecast a 3.6% annual increase. Gasoline prices soared 7.1% during the month.
2. Core prices and benefits
Core CPI, excluding food and energy, rose 0.3% in September and 2.6% over the year. Before the report, markets assigned roughly a 22% chance of a Federal Reserve rate hike at its October 27-28 meeting. The Senior Citizens League projected a 3.5% Social Security cost-of-living adjustment in 2027, up from 2.8% in 2026, which it said would lift the average monthly retiree benefit by $67.90 to $2,007.
