US consumer prices rose slightly in September, led again by sharp increases in the index for used vehicles. The Labor Department reported Tuesday that the consumer price index rose 0.2 percent last month, after gaining 0.4 percent in August.

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Prices for used cars and trucks rose 6.7 percent in September after a 5.4 percent gain in August and are now up 10.3 percent in the past 12 months. Overall inflation for the last 12 months is up 1.4 percent while core inflation, which excludes energy and food, is up 1.7 percent.

Inflation remains below the Federal Reserves target of 2 percent, and Fed officials in the summer changed their operating policy to say that the Fed was prepared to allow for inflation above that level for a time, in order to make up for the many years its been below that target.

Because of that change, many economists believe the Fed will leave its benchmark interest rate at a record low near zero for the foreseeable future as it tries to lift the country out of a recession which has cost millions of jobs.

First Published:Oct 13, 2020 6:40 PM IST