US Consumer Prices Rise as Rents Surge and Inflation Remains Low

US consumer prices increased in September, driven by a surprise surge in rental costs, but underlying inflation pressures remained moderate, supporting expectations that the Federal Reserve would not raise interest rates next month. The consumer price index rose 0.4% last month, with shelter costs accounting for more than half of the increase. However, the annual increase in consumer prices excluding food and energy components was the smallest in two years. With the labor market still tight, reaching the Fed's 2% inflation target could be challenging, suggesting that interest rates may remain elevated for longer.