Economics
U.S. Inflation Trails Estimates; Prices Remain Near Fed Goal
- Index excluding food and energy rose 2.2% from year earlier
- Biggest drop in used-car prices in 15 years drags down gauge
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A gauge of underlying U.S. inflation was below estimates in September as used-car costs fell and housing rents cooled, signaling that price gains may remain close to where Federal Reserve policy makers want them amid an outlook for continued gradual interest-rate hikes.
Excluding volatile food and energy costs, the core consumer price index rose 2.2 percent in September from a year earlier, the same pace as in August and less than the 2.3 percent median estimate of economists surveyed by Bloomberg News, a Labor Department report showed Thursday. The broader CPI slowed to a 2.3 percent annual gain, the least since February, compared with forecasts for 2.4 percent.