Prices rose 8.2% in September compared with a year ago, intensifying pressure on households. Here's what it means for the economy and what's next.
By CHRISTOPHER RUGABER, AP Economics Writer WASHINGTON — Inflation in the United States accelerated in September, with the cost of housing and other necessities intensifying pressure on households, wiping out pay gains that many have received and ensuring that the Federal Reserve will keep raising interest rates aggressively.
Consumer prices rose 8.2% in September compared with a year earlier, the government said Thursday. On a month-to-month basis, prices increased 0.4% from August to September after having ticked up 0.1% from July to August. Yet excluding the volatile categories of food and energy, so-called core inflation jumped last month — a sign that the Fed's five rate hikes this year have so far done little to cool inflation pressures. Core inflation climbed 0.6% from August to September and 6.6% over the past 12 months. The yearly core figure is the biggest increase in 40 years. Core prices typically provide a clearer picture of underlying price trends.
Inflation has swollen families' grocery bills, rents and utility costs, among other expenses, causing hardships for many and deepening pessimism about the economy despite strong job growth and historically low unemployment. Full story:8 charts tracking the US economy Tags The business news you need Get the latest local business news delivered FREE to your inbox weekly.
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