US inflation rose to 3.7% in September as gasoline prices surged
Why it matters: The hotter reading could keep Federal Reserve rate pressure in place if energy costs spread into other prices.
US consumer inflation accelerated to 3.7% in the year through September, topping expectations as gasoline prices drove much of the increase. The Bureau of Labor Statistics said vehicle fuel prices climbed 34.2% from a year earlier and jumped 9.1% in September alone, accounting for more than half of the monthly rise in inflation. Energy prices overall rose 20.4% over the year, with fuel oil up 74.2% and higher costs also recorded for electricity and energy services. Food prices were flat on the month and up 2.5% from a year earlier. Core inflation, which strips out food and energy, came in at 2.6%, a sign that price pressures outside energy remained more restrained.