U.S. Inflation Climbs to 3.7% Ahead of the Fed’s Next Meeting

The Consumer Price Index for All Urban Consumers (CPI) rose 3.7% over the 12 months through September, accelerating from 3.4% through August. The increase puts the latest inflation reading ahead of the Federal Reserve’s next scheduled policy meeting on Oct. 27–28.

From August to September, the index rose 0.6% on a seasonally adjusted basis, following a 0.4% monthly gain in August. The 12-month CPI comparison is not seasonally adjusted.

Prices excluding food and energy, a measure known as core CPI, increased 0.3% for the month, matching August’s pace. Over 12 months, core CPI rose 2.6%, compared with 2.4% through August.

Gasoline rose 9.1% in September; the broader energy index gained 5.2%, while gasoline accounted for more than half of the CPI’s monthly increase.

The Fed raised its target range by 0.25 percentage point on Sept. 16, setting it at 3.75% to 4.00%. Its next scheduled meeting is Oct. 27–28.