The pace of inflation picked up in September, pushing prices up by more than expected, data from the Department of Labor showed Wednesday.
The Consumer Price Index rose 0.4 percent compared with August, pushing the index’s annual gain up to 5.4 percent. A month ago, prices were up 0.3 percent compared with the prior month and 5.3 percent compared with 12-months earlier.
Analysts had forecast the index’s gains to match the August figures, so the actual results were one-tenth of a point worse than expected.
Core CPI, which excludes the volatile categories of food and energy, rose 0.2 percent on a monthly basis, up from 0.1 percent a month earlier. Compared with September of last year, core CPI was up 4 percent.
Households were hit hard by rising prices for housing, fuel, and food. The index for food rose 0.9 percent, with food at home rising 1.2 percent. The index for energy jumped 1.3 percent, with gasoline climbing 1.2 percent.
The September figures indicate that inflationary pressures are not subsiding even after months of higher than expected price hikes. Many Fed officials and the Biden administration have said they expect inflation will be transitory. On Tuesday, Atlanta Fed president Raphael Bostic broke with this consensus and warned that inflation is likely to last longer than expected due to supply chain disruptions.
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