U.S. consumer prices rose 5.4% in September from a year ago, representing the largest annual gain since 2008.
America’s Consumer Price Index rose 0.4% from August, according to U.S. Labor Department data. Compared with a year earlier, inflation was up 5.4% from September 2020, matching the largest annual gain since 2008.
Excluding the volatile food and energy components, so-called core inflation rose 0.2% in September from the previous month. The median estimate of economists called for a 0.3% monthly gain in the overall measure of inflation and a 0.2% advance in the core inflation rate.
A combination of shipping challenges, material shortages, high commodity prices and rising wages have sharply driven up costs for producers. Many have passed those costs onto consumers, leading to more persistent inflation than many economists, including those at the U.S. Federal Reserve, had anticipated.
The rise in price growth seen last month reflected higher food and shelter costs. American consumers paid higher prices for new vehicles and household furnishings and supplies, which increased by a record 1.3% in September.
And elevated energy prices are set to take an additional bite out of workers’ paychecks in the coming months.
