The National Association of Federal Credit Unions’ Macro Data Flash report on the consumer price index showed last week that overall inflation rose slightly in September by 0.2 percent.
NAFCU research assistant Doug Christman analyzed data from the Bureau of Labor Statistics in his report on CPI, which increased 1.2 percent year-over-year in September and a decrease from 1.5 percent in August.
“Inflation continues to run below the Federal Reserve’s 2 percent target,” Christman said. “Demand for goods and services remains low due to slow employment and income growth and the weak economic recovery. Changes in overall CPI over the past several months were due primarily to changes in energy prices. On a year-over-year basis, core CPI held fairly steady at 1.7 percent, relatively unchanged over the previous five months.”
Christman found that core prices rose 0.1 percent in September and 1.7 percent year-over-year. Energy prices rose 0.8 percent month-over-month and fell 3.1 percent year-over-year. Food prices remained relatively stable, though prices did increase 1.4 percent compared to the previous year.
The Federal Reserve has worked since the financial crisis to keep prices rising by approximately two percent each year, a break from its historic mission to keep inflation low. Some Fed officials have cited slower inflation, along with reducing unemployment, as reasons to continue its bond purchases, The New York Times reports.