US Data: Inflation Rate Rises to 2.4 percent, Exceeding Expectations

United States government data released on Thursday, shows that the annual inflation rate in the United States rose to 2.4 percent in September, surpassing expectations according to the Consumer Price Index report from the Labor Department. The Bureau of Labor Statistics reported that the index, which the Federal Reserve (the US central bank) relies on as a key measure of inflation, "rose by 0.2 percent seasonally adjusted for the month, putting the annual inflation rate at 2.4 percent," with both readings exceeding the Dow Jones consensus by 0.1 percent. In contrast, a broad index measuring costs of goods and services across the US economy indicated that the annual inflation rate "fell by about 0.1 percent from August, the lowest level since February 2021." Excluding food and energy, "core prices increased by 0.3 percent month-over-month, bringing the annual rate to 3.3 percent," with the core readings also coming in 0.1 percent higher than expectations. In parallel, unemployment claims saw an unexpected j ump following Hurricane Hilary and the Boeing strike, reaching 258,000 seasonally adjusted claims for the week ending October 5th, the highest total since August 5th 2023, marking an increase of 33,000 claims from the previous week and significantly higher than the anticipated 230,000 claims. Continued claims also rose to 1.861 million, an increase of 42,000 claims. These unemployment claims numbers reflect the damage caused by Hurricane Hilary, which struck a large area of the southeastern United States on September 26th. Florida and North Carolina, two of the most affected states, recorded a total increase of 12,376 claims according to unadjusted data. Additionally, the strike by 33,000 Boeing workers also contributed to the rise in unemployment claims, particularly in Michigan, where the strike began on September 13th and is still ongoing, recorded the largest increase with an additional 9,490 claims during the mentioned week. In response to the data, US Economic Advisor Lael Brainard commented positiv ely, noting that "today's report shows inflation has fallen again to 2.4 percent, the same level it was before the COVID-19 pandemic." She emphasized in a statement released by the White House the "continued progress with inflation returning to pre-pandemic levels, the creation of 16 million jobs, a decline in interest rates, and decreasing unemployment." Source: Kuwait News Agency