Rise in prices showed the need for a further fight against inflation

A key report about the inflation level showed that the rise in consumer goods prices was higher than expected. That’s why the Federal Reserve System has continued a historic pace of rate growth.

On Thursday, the BLS released data showing that month-on-month prices increased by 0.4% compared with August. According to experts' forecasts, the monthly figure should grow by 0.2%.

On a year-on-year basis, prices rose 8.2% in September, down from 8.3% in August. These data were obtained according to the CPI. They show the changes in the cost of consumer products. Economists were suggesting that last month’s growth decreased up to 8.1%. 

In September Core CPI considering the volatile goods and energy grew to 6.6% compared to last year. This hasn’t been seen since August 1982.

As for the base monthly indicator, it grew by 0.6% in September, coinciding with the same growth in August. This came as a surprise to investors. The market crashed. Investors were afraid that continued inflation would force the FRS to act even more actively.

The underlying service price change, excluding energy, rose to 0.8% in September from the previous month. It is the biggest monthly increase in three decades, according to the BLS. House prices increased by 0.7% in September and by 6.6% year-on-year.