A key reading of consumer prices jumped more than expected last month, data released on Wednesday showed, raising the stakes for the White House and Federal Reserve as they continue to wager that rapid inflation will cool as the economy returns to normal.
The Consumer Price Index climbed 5.4 percent in September when compared with the prior year, more than expected in a Bloomberg survey of economists and faster than its 5.3 percent increase through August. From August to September, the index rose 0.4 percent, also above expectations.
The gains came as housing prices firmed, and as food — especially meat and eggs — cost consumers more. Stripping out volatile food and fuel, inflation is still rapid, at 4 percent in the year through last month.