Stories
US Inflation Expected to Rise in September Driven by Gas and Semiconductors
- •Consumer prices in the US are forecast to have risen 3.6 per cent in September compared to a year earlier, up from 3.4 per cent in August.
- •Monthly prices are expected to have increased by 0.6 per cent, driven largely by higher gas prices stemming from the Iran war.
- •Core prices likely rose 2.5 per cent year-over-year, remaining close to the Federal Reserve target but staying sticky since January.
- •Federal Reserve Chairman Kevin Warsh indicated that inflation remains too high, though most Wall Street investors expect rates to hold steady at the upcoming October meeting.
- •Supply shocks, including higher costs for semiconductors and computer equipment, have also pushed up prices for consumer electronics like gaming devices and smartphones.
Key Questions Answered
Consumer prices are forecast to have risen 3.6 per cent in September compared with a year earlier, up from 3.4 per cent in August. On a monthly basis, prices are expected to have risen 0.6 per cent from August to September.
The Iran war has disrupted oil and gas supplies, causing gas prices to jump about 9 per cent from August to September and driving much of the overall increase in inflation. These higher fuel costs have also raised shipping expenses for businesses and pushed up air fares by about 23 per cent from a year ago.
The artificial intelligence buildout has sharply elevated the cost of semiconductors, computer equipment, and electrical components. This led Nintendo to increase the price of its Switch 2 gaming system by 11 per cent to USD 499.99 on September 1, and Apple's iPhone 17 cost about 10 per cent more than the previous upgrade.
