U.S. Inflation Returns to 13-Year High

Prices continued to rise in the United States as its inflation rate in September returned to a 13-year high due to housing and food becoming more expensive.

Based on the figures released by the Bureau of Labor Statistics, the consumer price index (CPI) rose by 5.4 percent year-on-year in September, just slightly above expectations that it will stay at August’s rate of 5.3 percent.

The September rate matched increases in June and July and is the highest annualized rate since the global financial crisis in 2008.

On a monthly basis, prices increased by 0.4 percent in September while it went up by only 0.3 percent a month earlier.

Price pressures mainly came from housing prices surging by 0.4 percent in a month, while food costs went up by 0.9 percent — these two figures contributed to more than half of the increase in headline inflation.

Energy prices were also more expensive, increasing by 1.3 percent. The U.S. Energy Information Administration said in a report on Oct. 13 that domestic heating bills will rise sharply this coming winter.

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