US inflation ticked higher in September, but the details of the report suggested price pressures are cooling beneath the surface. Headline CPI accelerated to 3.0% yoy, up from 2.9% but slightly below expectations of 3.1%. That marks the highest level since January.
Though, core CPI — excluding food and energy — slowed from 3.1% to 3.0%, undershooting forecasts and easing from 3.1% in the previous two months. After holding at 3.1% for two consecutive months, the core rate could be entering into a gradual downtrend.
On a monthly basis, headline prices rose 0.3% mom, while core prices increased just 0.2%, both softer than expected. Energy costs were again the key driver of the headline gain, with the gasoline index surging 4.1% and the broader energy index up 1.5%. Food prices also continued to edge higher, rising 0.2% as grocery costs climbed more sharply than dining-out prices.
