<article><p>Gains in consumer prices in the US slowed less than most analysts' forecasts and so-called core inflation accelerated to a four-decade high, a sign inflation pressures continue to build even as the Federal Reserve aggressively hikes interest rates.</p><p>The consumer price index (CPI) — a measurement of what consumers pay for a basket of finished products and services — rose by 8.2pc in the 12 months through September, the lowest in seven months and slowing slightly from 8.3pc in the year to August, according to the Bureau of Labor Statistics. But CPI less food and energy, referred to as core CPI, accelerated to 6.6pc, the highest since 1982, from 6.3pc in the prior period.</p><p>The latest numbers make another 75 basis point rate hike by the Fed highly likely at its November policy meeting. That would be a sixth consecutive rate hike, extending the steepest such course of rate hikes since the 1980s. The Fed has signaled it is willing to risk a recession to rein in inflation that was triggered by a confluence of pent-up demand after Covid-19, snarled supply chains and Ukraine war energy price hikes.</p><p>The CPI rose by 0.4pc in September on a seasonally adjusted basis from the prior month, accelerating from a 0.1pc gain in August and no change in July, but well off the cyclical peak of 1.3pc in June.</p><p>Core CPI rose by 0.6pc in September on the month, with core services at 0.8pc, leading the gains and the core goods measure unchanged. Bank of America Global Research said the slowdown in core goods was "consistent with the notion that supply chain pressures are easing."</p><p>The energy index fell 2.1pc in September on the month after a 5pc drop the prior month.</p><p>Over the 12-month period, the energy index increased by 19.8pc, slowing from the 23.8pc increase in the 12 months through August. The gasoline index increased by 18.2pc and the fuel oil index rose 58.1pc. The natural gas index rose by 33.1pc.</p><p>The food index increased 11.2pc over the last year while the shelter index rose 6.6pc. The new car index rose 9.4pc and the used car index rose by 7.2pc.</p><p><i>By Robert Willis</i></p></article>
