Source: Economics Group of Wells Fargo Bank, N.A.
Summary
The September CPI report came in a bit softer-than-expected. Headline CPI rose 0.31% in the month, while core CPI increased 0.23%, the latter about four basis points below our forecast. Headline CPI growth was driven in part by a 4% jump in gasoline prices. The softer core CPI reading was flattered by just a 0.1% increase in owners’ equivalent rents, the slowest increase since November 2020. Core goods inflation rose 0.2%, with a drop in used autos offset by another large jump in apparel prices.