CPI Report: Annual Inflation Rate Comes In Lower Than Expected At 3% In September

• Consumer price index (CPI) rose 0.3% in September on a seasonally adjusted basis, after rising 0.4% in August.
• Core CPI, which excludes food and energy, rose 0.2% in September, after increasing 0.3% in August, in line with a Dow Jones estimate.
• Gasoline prices rose 4.1% in September, and the BLS stated that it was the largest contributor to the all-items monthly increase.

U.S. consumer prices rose less than expected in September, according to a delayed CPI report released on Friday due to the ongoing U.S. government shutdown.

According to data from the Bureau of Labor Statistics (BLS), on a seasonally adjusted basis, CPI rose 0.3% in September, after rising 0.4% in August.

This puts the annual rate at 3% before the seasonal adjustment. 

Core CPI, which excludes food and energy, rose 0.2%in September, after rising 0.3% in August, in line with a Dow Jones estimate, according to MarketWatch data.

Gasoline Prices Surge

Gasoline prices rose 4.1% in September, and the BLS stated that it was the largest contributor to the all-items monthly increase, with the energy index rising 1.5% over the month. The food index rose 0.2% during the month.

Indexes that increased over the month include shelter, airline fares, recreation, household furnishings and operations, and apparel, according to BLS data. The indexes for motor vehicle insurance, used cars and trucks, and communication were among the few major indexes to decline in September.

Treasury Yields Edge Lower

Following the release of CPI data, the benchmark 10-year Treasury yield fell one basis point to 3.982%, while the two-year Treasury yield fell three basis points to 3.457%.

Meanwhile, U.S. equities gained in Friday’s pre-market trade. At the time of writing, the SPDR S&P 500 ETF (SPY), which tracks the S&P 500 index, was up 0.64%, the Invesco QQQ Trust ETF (QQQ) rose 0.9%, while the SPDR Dow Jones Industrial Average ETF Trust (DIA) gained 0.5%. Retail sentiment around the S&P 500 ETF on Stocktwits was in the ‘bearish’ territory.

The iShares 7-10 Year Treasury Bond ETF (IEF) was up 0.16% at the time of writing.

Also See: Dow Futures Rise Ahead Of Highly Awaited Inflation Data: INTC, F, PG, NEM Among Stocks To Watch

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