US September inflation hit 3.7% as gasoline prices surged
Why it matters: Higher energy costs and a rise in core inflation to 2.6% could keep pressure on the Fed to raise rates.
US consumer inflation accelerated to 3.7% in September from a year earlier, up from 3.4% in August, as gasoline and other energy costs climbed sharply. Bureau of Labor Statistics data showed vehicle fuel prices rose 34.2% from a year earlier and 9.1% in September alone, accounting for more than half of the monthly increase in the consumer price index. Energy prices overall were up 20.4% from a year earlier, including a 74.2% jump in fuel oil. Core CPI, which strips out food and energy, rose to 2.6% from 2.4%, while food inflation stayed flat on the month and was 2.5% over the year.