Among core goods, new and used car prices, along with apparel and furniture, contributed to the increase. Grocery prices also saw their highest rise since the beginning of the year, with notable increases in eggs and fresh fruit.
Within the services sector, car insurance, medical care, and airfares saw sharp price increases. Admission prices for sporting events surged by 10.9 percent, driven partly by the start of the football season.
Shelter prices, which form the largest component within services, rose by 0.2 percent, a sharp decline from the 0.5 percent increase in August.
Owners’ equivalent rent, a major subset of shelter costs, rose by 0.3 percent, also slowing compared to the previous month. Hotel prices, however, dropped unexpectedly, despite predictions of a significant increase.
Bloomberg Economics commented that despite the core CPI’s upside surprise, the report is unlikely to alter the FOMC’s view that inflation is on a downward trend. Analysts Anna Wong and Stuart Paul expect the FOMC to proceed with a 25-basis-point rate cut at the November 6-7 meeting.
