MNI BRIEF: US Sept CPI Softer Than Expected, Core Goods Miss

U.S. CPI rose less than expected in September and slowed from August's pace ahead of a second straight interest rates cut from the Federal Reserve. Headline and core CPI increased 0.310% and 0.227%, respectively, about a tenth lower than Wall Street estimates, bringing the year-over-year rates to 3.013% and 3.019%. 

The CPI report was delayed amid the ongoing federal government shutdown, but the Bureau of Labor Statistics noted that data collected was completed before the lapse in appropriations. 

Owners' equivalent rent rose just 0.1% in September, the smallest increase since January 2021, the BLS said. Core services excluding housing, or supercore CPI, gained 0.351%, close to its three-month average of 0.387%, according to an MNI calculation. 

Core goods CPI surprised to the downside at 0.22% for the month, a slowdown from 0.28% in August, though core goods excluding used cars were higher at 0.31% in September. Most Fed officials think tariffs will be a one-time move in the price level, but the pass-through to consumers has been gradual. (See: MNI POLICY: Lingering Inflation Unease Tempers Fed Easing Push)