The inflation rate did not budge in September, staying at 3.7 percent.
The 12-month rate matched the 3.7 percent rate from August in the newest report from the Bureau of Labor Statistics released Thursday.
The report followed the Federal Reserve pausing interest rate hikes in September, keeping the target rate between 5.25 percent to 5.5 percent. It was the second time in its past three meetings for the Federal Reserve to pause rate hikes. The Federal Reserve has raised rates 525 basis points since early 2022.
The Federal Reserve has held steadfast to its effort to bring inflation down to its 2 percent target.
The annual core inflation index, minus food and energy, was at 4.1 percent. That is down from August’s 4.7 percent.
The overall consumer price index for September was up 0.4 percent. It was down from the 0.6 percent in August.
Shelter continues to account for most of the increase in prices.
“The index for shelter was the largest contributor to the monthly all items increase, accounting for over half of the increase. An increase in the gasoline index was also a major contributor to the all items monthly rise,” the BLS reported.
Used vehicle prices are down 8 percent annually on the index, with a loss of 2.5 percent in September.
Motor vehicle insurance continues to increase, rising by 1.3 percent in September. That followed a 2.4 percent increase in August. Insurance rates are up 18.9 percent in the past year.
The inflation news followed a strong jobs report. The economy added 336,000 jobs in September, according to the BLS. It far exceeded the annual monthly rate of 267,000 jobs added. It was nearly double the amount of jobs added in August, 187,000.
Leisure and hospitality added 96,000 jobs. Government employment grew by 73,000. Healthcare added 41,000 positions.
The unemployment rate stated at 3.8 percent for a second straight month.
The labor participation rate remained at 62.8 percent.
