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Inflation Rises to 3.7 Percent in September as Gas Prices Surge

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Consumer prices rose 0.6 percent in September and were up 3.7 percent from a year earlier, the Bureau of Labor Statistics reported yesterday. The annual inflation rate increased from 3.4 percent in August, while the monthly gain accelerated from 0.4 percent.

Core prices, which exclude food and energy, rose 0.3 percent for the month and 2.6 percent over the year, up from 2.4 percent in August. The monthly increase matched August’s pace, while the annual rate accelerated.

Energy drove much of the monthly increase. Gasoline prices rose 9.1 percent in September, accounting for more than half of the overall monthly increase, while the broader energy index climbed 5.2 percent. Fuel oil prices jumped 15.3 percent during the month and are up 74.2 percent over the past year. Gasoline prices have risen 34.2 percent over the year, while overall energy prices are up 20.4 percent.

Housing costs also contributed to inflation. Shelter prices rose 0.4 percent in September, following a 0.3 percent increase in August, and are up 3.2 percent over the year. Rent increased 0.2 percent during the month, while owners’ equivalent rent rose 0.3 percent.

For food, prices were unchanged overall in September. Grocery prices fell 0.1 percent, while food purchased away from home increased 0.2 percent. Over the year, food prices are up 2.5 percent, with grocery prices rising 1.8 percent and restaurant prices increasing 3.5 percent.

Additionally, airline fares rose 1.2 percent for the month and are up 22.4 percent over the year. Used cars and trucks increased 0.7 percent in September but remain down 1.5 percent over the year. Medical care services rose 0.3 percent, while prescription drug prices fell 1.2 percent. Communication prices declined 0.2 percent during the month.

The October index is scheduled for release on November 10.