UT Economist Says Interest Rates May Increase

KNOXVILLE — A report from the U.S. Labor Department said the Consumer Price Index rose 0.4 percent in September.

The report said the index reflected higher prices for clothing, cigarettes and gasoline.

University of Tennessee economist Matt Murray said rising prices for those products reflected higher short-term consumer spending.

“Gasoline is very important, in terms of its use as we drive our cars,” said Murray, “as are clothing and tobacco, as mainstays of consumer purchasing on a day-to-day basis.”

Murray said the Federal Reserve is likely to raise interest rates again when it meets later this fall.