
Inflation continues to tick higher. The Consumer Price Index (CPI) rose 3.7 percent year over year in September and 0.6 percent month over month. Core CPI, which excludes food and energy, rose 2.6 percent annually and 0.3 percent monthly. Both readings came in slightly above consensus expectations. They marked a second straight month of accelerating headline and core inflation, in contrast to earlier this summer, when core price growth was more subdued. The latest report suggests inflationary pressures may be broadening beyond a purely energy-driven rebound, as both core commodities and core services prices increased in September. Core commodities rose 0.3 percent month over month, while core services increased 0.4 percent, marking the strongest monthly gains for both categories in five months.