Inflation climbs again. What it means for Fed rate cuts, Social Security, and your wallet

Inflation rose again in September, revealing the persistence of rising prices as the job market shows signs of cooling and consumers head into the holiday season.

Consumer prices increased 3% from a year earlier, slightly up from 2.9% in August, according to the Labor Department’s Consumer Price Index, a measure of goods and services costs across the country.

On a monthly basis, costs increased 0.3% after rising 0.4% in August.

Price gains were led by increases for gasoline, and energy, which rose 1.5% over the month. Shelter, airline fares, recreation, household furnishings and operations, and apparel prices all increased. The cost of motor vehicle insurance, used cars and trucks, and communication declined in September.

Core prices, which exclude volatile food and energy costs, rose 0.2%, after rising 0.3% the month before. That moved the annual core inflation rate to 3%.

Airline fares increased 2.7%, after rising 5.9% in August. Apparel costs rose 0.7% and the index for personal care, recreation, and household furnishings and operations all rose 0.4%

The economic impact of the ongoing government shutdown has not yet been fully felt, according to Bankrate Financial Analyst Stephen Kates. At the Bureau of Labor Statistics, October data collection has been suspended during the lapse in funding.

“Federal layoffs or the absence of backpay would drag down spending and worsen labor conditions, especially in the local areas most affected,” Kates said in an Oct. 21 note. “The longer the shutdown continues, the larger our blind spot will be on current economic conditions.”

Reach Rachel Barber at rbarber@usatoday.com and follow her on X @rachelbarber_

This article originally appeared on USA TODAY: Inflation rises again. What it means for rates, Social Security, you

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