Consumer prices in the United States kept increasing in September, primarily driven by surging housing and petrol costs, according to recent data.

The inflation rate for the 12 months ending in September was 3.7%, the same as the rate recorded for August. The US central bank is currently deliberating whether to raise interest rates again to stabilize price growth.

While inflation has notably cooled since the previous year, it still exceeds the targeted 2%.

Analysts have noted that the latest data from the US Labor Department provides few definitive indications regarding the next steps of the US Federal Reserve.

"The overall trend is quite encouraging, but the battle continues," commented Olu Sonola, Head of US Economics at Fitch Ratings.

Between August and September, inflation cooled from 0.6% to 0.4%. The surge in housing costs had the most significant impact on the Consumer Price Index, the basket of goods and services used by the Labor Department to measure price changes.

Petrol prices also continued to rise, albeit at a slower pace compared to earlier periods.

However, prices for used cars and clothing saw month-on-month declines, and the increase in grocery prices decelerated.

The Federal Reserve has already significantly increased borrowing costs, with its key interest rate currently exceeding 5.25%, up from near-zero in March 2022. This increase has had various effects on the public, including notably higher mortgage rates and more expensive business loans.

The Fed's intention is that these higher rates will promote saving, reduce business expansion, and cool the economy, thereby alleviating price pressures. While inflation has dropped substantially from its over 9% levels the previous year, it still surpasses the Fed's target.

Federal officials have warned that they anticipate rates to remain relatively high for an extended period, partly due to better-than-expected job growth and spending. Nonetheless, they are increasingly optimistic that they can curb inflation without causing a severe economic downturn. Photo by 127driver, Wikimedia commons.