US Labour Department data revealed earlier on Tuesday had orchaestrated an ambivalent tenure on US inflation, as US consumer prices Index that keeps track of the changes in the prices of a basket of goods and services purchased by the American households, rose 0.2 per cent in September after gaining 0.4 per cent a month earlier, suggesting a steeper slowdown in the prices of US goods and services which would more likely to keep inflation muted and to proffer enough room for the US Fed to keep its benchmark lending rates unchanged in context of a pandemic-battered US economy which had entered into a recession in February this year.
In point of fact, a relatively copious rise in US Consumer prices index last month was almost entirely prompted by an increase in the sales of used vehicles, as auto markets continued to struggle with a steep decline in sales of new passenger cars amid a global-scale downturn in economy.
US Consumer prices rise 0.2 per cent in Sept., suggests tepid inflation
In tandem, according to US Labour Department data released earlier in the day, September’s gain in US Consumer Price Index was goaded by a rise in the sales of used cars as beforemtioned, while average prices for used cars and pickups surged 6.7 per cent last month following a gain of 5.7 per cent in August.
Besides, prices of used cars and pickup trucks on an average in the United States have been now up about 10 per cent over the course of past twelve months. Apart from that, while a slowdown in US Consumer Price Index data for September had been signalling that inflation might hover below the US Federal Reserve’s target of 2 per cent for a while, overall inflation for the past twelve months has been up by 1.4 per cent and the core inflation that excludes foods’ and energy prices, is up by 1.7 per cent.