Consumer prices were kept under check in the month of September as per a report released by the Labor Department today morning. Consumer prices rose by 0.1% as compared to a drop of 0.2% seen in the previous month. The uptick was largely in line with what the economist had expected. As per the report, consumer spent more on food and housing but the price index was kept under check because of the fall in energy prices. The prices of food rose by close to 0.1%, with beef prices rising by close to 2%.
A positive point to be noted in the report was that weekly wages of workers rose by close to twice compared to the daily wages in the past twelve months, though many analysts believe that the 0.6% gain is very marginal to say the least.
Many analysts are now looking forward to the next steps that would be taken by the Federal Reserve. Many believe that a positive consumer price report is a huge positive as it would keep the Fed in line with unwinding the quantitative easing program by the end of October, contrary to popular perception that the Fed would continue with bond buying programs if the fear of deflation loomed large. Real wages rose by a scant 0.3% which is huge drag taken into consideration the US economy depends mainly on consumer spending.
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