Economics
U.S. Consumer Prices Trail Forecasts as Used-Car Costs Drop
- Core index rises 0.1% from prior month; main CPI unchanged
- Report may bolster expectations for third Fed rate cut
Photographer: Daniel Acker/Bloomberg
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A key measure of U.S. consumer prices rose by less than expected in September as used-car costs fell by the most in a year, potentially bolstering the case for the Federal Reserve to cut interest rates for the third time in three months.
The core consumer price index, which excludes food and energy, increased 0.1% from the prior month, a Labor Department report showed Thursday, below the median estimate of economists. The annual gain of 2.4% matched projections as well as the August increase. The broader CPI was unchanged on the month and up 1.7% annually, trailing projections.