US inflation at 3% in September: gas prices rise, rental growth slows; Trump’s tariffs raise costs of consumer goods – The Times of India

U.S. inflation remained high in September, fueled by a surge in gas prices, even as rental growth slowed. This reflects a mixed picture for consumers in an economy with steady growth but slow hiring.According to the Labor Department report cited by AP, consumer prices rose 3% from a year earlier — the highest increase since January and up from 2.9% in August. Core prices, which exclude volatile food and energy costs, also rose 3%, up from 3.1% the month before.On a monthly basis, price increases moderated: overall consumer prices rose 0.3% in September, compared with 0.4% in August, and core inflation slowed from 0.3% to 0.2%.The report, which has been delayed by the government shutdown that started on October 1, leaves uncertainty over October’s inflation figures, which may not be released.

Gas prices are rising, rental growth is slowing

Gas prices rose 4.1% in September, a key driver of inflation, while grocery prices rose 0.3%, less than in August, and are 2.7% higher than a year ago.Apartment rents rose just 0.2% in September and 3.4% over the year, the smallest annual increase in almost four years.“Simply put, while inflation does not appear to be accelerating, it is also not moving back toward the target,” said Eric Winograd, chief U.S. economist at AllianceBernstein. “That will keep the Fed cautious rather than aggressive,” he added.

Impact of tariffs on consumer prices

The tariffs imposed by President Donald Trump also pushed up the prices of furniture, appliances, clothing and shoes. Economists estimate that the rates add about 0.4 percentage points to annual inflation and expect that trend to continue early next year.Persistent tariffs continue to hit companies in specific sectors. The Trump administration is considering steep tariffs on imports from Nicaragua, which will impact companies like French Broad, a chocolate maker.“We have taken on some significant additional costs,” said co-founder Dan Rattigan, pointing to higher prices for cocoa, nuts and chocolate-making equipment, as quoted by AP.The cost of necessities is a growing political problem. Beef prices reached record highs, partly due to tariffs and drought-related herd reductions. Ground beef rose to $6.32 per pound, and beef costs rose 1.2% in September and 14.7% over the year.Although inflation has fallen sharply from a peak of 9.1% more than three years ago, it remains a major concern for consumers. About half of Americans say grocery costs are a “major” source of stress, according to an August AP-NORC survey.