Fuel-price spike drives up US inflation ahead of two-day Fed meeting
Washington — A record spike in fuel prices following the summer’s back-to-back hurricanes drove up a closely watched US inflation measure in September, but the underlying trend remained weak, government figures showed on Monday. The new figures come as the US Federal Reserve prepares to begin a two-day meeting on Tuesday, with policy makers widely expected to leave benchmark interest rates untouched, but to raise them in December. However, disagreements among policy makers were unlikely to subside in the face of a fresh batch of weak numbers in September. The Personal Consumption Expenditures price index rose 0.4% for the month, up 0.2% from August and in line with analyst expectations. The increase was driven almost entirely by a 6.8% spike in the costs of petrol, electricity and natural gas — the largest monthly jump in the energy index in more than eight years. But when volatile food and fuel costs are excluded, the "core" index rose only 0.1% for the month, the same level now re...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.