US consumer prices accelerate in September on costlier gasoline; core CPI firmer
SPY•The CPI rose 0.6% in September from August and 3.7% year over year, while core CPI rose 0.3% monthly and 2.6% annually. Gasoline prices jumped 7.1%.
1. Consumer prices rise
The Consumer Price Index rose 0.6% in September after increasing 0.4% in August, and was up 3.7% from a year earlier. Economists had forecast a 0.6% monthly increase and a 3.6% annual rise. Gasoline prices surged 7.1%.
2. Core inflation firms
Excluding food and energy, CPI increased 0.3% in September, matching August’s gain. Core CPI rose 2.6% over the year, up from 2.4% in August. Before the report, markets assigned roughly a 22% chance of an October rate hike, while economists had expected the Fed to raise rates in December.
3. Social Security outlook
The Senior Citizens League projected a 3.5% cost-of-living adjustment for Social Security benefits in 2027, up from 2.8% in 2026. It estimated the increase would add $67.90 to the average monthly retiree benefit, bringing it to $2,007.
