In September, US Prices Rose By &Nbsp, And Costumes Fell The Most.

US consumers in September

The consumer price index (CPI) in September climbed 0.3% from the previous month, according to data released by the US Department of labor in Washington today, in line with the median forecast for a Bloomberg visit.

Excluding volatile food and energy prices, the so-called core CPI rose by 0.1%, not only lower than expected, but also a new low since March.

When employment and income growth are sluggish and consumer spending is tight, apparel retailers Gap Inc. and Safeway Inc., a supermarket chain operator, say they have limited space to raise prices and are unable to make up for the high cost of raw materials.

As the worries caused by inflation will decrease, the policy makers will have flexibility to take further measures to cope with the collapse of the US economy.

The biggest drop in clothing prices since 1998 has been the decline in used cars and trucks, plus a 4 month low of rent growth, all of which contributed to a slowdown in core competitiveness last month.

The report also suggests that the number of retirees expected to receive social security benefits will increase by 3.6% next month.