U.S. Consumer Prices Rose 0.1% in September

In a positive sign for American workers, the pace of inflation has risen sharply in the past six months.

Economists surveyed by The Wall Street Journal 0.2% in September, and core prices to rise 0.2% as well. Excluding the volatile food and energy categories, so-called core consumer prices rose 0.1%, the same pace as in August.

In the 12 months through September, rose 2.3%, the smallest year-over-year change since February. Core prices were up 2.2% on the year, the same rate as in August.

Economists expected a 2.4% increase in a year earlier, and a 2.3% rise in core prices over the 12-month period.

A stronger dollar is likely to have a lid on the prices of goods, many of which are being imported. Rising interest rates and higher economic growth in the US compared with other developed economies. The WSJ Dollar Index, which measures the greenback against a basket of other currencies, rose 5% from June to September.

Meanwhile wages rose in September, as workers reaped the benefits of a tight labor market combined with inflation muted. After adjusting for inflation, average hourly earnings rose in a seasonally adjusted 0.3% in September and are up 0.5% from September 2017.

Thursday's report showed an index of energy prices fell 0.5% in September, and gasoline costs dropped a seasonally adjusted 0.2% after rising 3% in August. The price index for used cars and trucks also declined considerably on the month, falling 3%. Food prices were flat.

The reading comes roughly two weeks after Federal Reserve policy makers raised their benchmark to 2.25%. 2019 to keep a strong economy on an even keel.

Fed chairman Jerome Powell said at his Sept. 26 news conference. He added, "We do not see that. We really do not see that. "

"Inflation is low and stable," he said.

Thursday's report follows the Labor Department's latest employment report, which shows average hourly earnings for private-sector workers rose 2.8% in September from a year earlier, a slight pullback from the 2.9% annual pace of wage growth in August – but still above 2.3% pace of year-over-year inflation.

On Wednesday, a gauge of U.S. business shows signs of bouncing back in September after a slowdown over the summer.

The producer-price index, a measure of the prices of goods and services, has increased seasonally by 0.2% in September, the Labor Department said. The rise in September prices has been increased after a short period of time.

Write to Harriet Torry at [email protected] and Eric Morath at [email protected]