Consumer Price Index Highlights Inflation Trends for September 2023
Consumer Price Index Overview
The Consumer Price Index climbed at an annual rate of 3% in September, coming in below economists' forecasts as the impact of President Trump's tariffs remain muted.
By the Numbers
- Economists polled by financial data firm FactSet had forecast CPI to rise at a 3.1% annual clip last month.
- The CPI measures price changes in a basket of goods and services typically purchased by consumers.
While most federal economic data releases have been suspended during the government shutdown, the Department of Labor is making an exception for the September CPI data. This data is crucial to determine the Social Security Administration's annual cost-of-living adjustment for beneficiaries, also scheduled to be announced on Friday.
What Economists Say
Inflation is inching higher partly due to the Trump administration's tariffs, according to economists. U.S. businesses are absorbing some costs in the form of lower profits, which has blunted the impact of the import duties on consumers. Still, companies are passing on as much as 55% of those import taxes to consumers in the form of higher prices, according to a Goldman Sachs analysis. Other research shows a lower rate of passthrough tariff costs to shoppers.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.