October 19, 1999
Consumer Prices Rise
Today, the U.S. Labor Department announced consumer prices rose 0.4% in September, the fastest rate jump in five months. This marks the third consecutive month prices have risen.
This increase is in line with prior estimates, which financial analysts say should dampen the Federal Reserve's enthusiasm for another interest rate hike to stem inflation.
Higher prices for tobacco and apparel lifted the Consumer Price Index, though increases in these categories were offset by reductions in the costs of airline fares, recreation, personal computers and accessories.
In the long term, the CPI grew at a much slower pace in this decade than in the 1980s. In the 1980s, inflation averaged a tick more than 5%. During this decade, consumer prices climbed at less than half that rate.
- by Liz Smutko