Inflation comes in hotter than expected as prices spike 5.4 percent

nypost.com
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The Labor Department's Consumer Price Index, which measures a basket of goods and services as well as energy and food costs, jumped 5.4 percent in September from a year earlier.
Inflation continued to surge in September, with prices rising more than expected as companies grapple with a snarled supply chain and a nationwide labor shortage, the feds said Wednesday.



That's up from August's 5.3 percent year-over-year rise in prices and matches the 5.4 percent increases seen in June and July, the biggest 12-month rise since August 2008, just before the financial crisis sent the US into the worst recession it had seen since the Great Depression.

Consumer prices rose 0.4 percent from August, the Labor Department said.

Economists surveyed by Dow Jones expected a 5.3 percent year-over-year spike in September and a monthly increase of 0.3 percent.

Consumer prices rose 0.4 percent from August, the Labor Department said. Xinhua News Agency via Getty Images

The core consumer price index, which excludes volatile food and energy costs, rose 4 percent from a year ago, matching the 4 percent year-over-year jump that the index saw in August.

The world's roiled supply chain is struggling to keep up with the whiplash spike in demand for goods as countries emerge from the pandemic. Spencer Platt/Getty Images

That measure of inflation has eased since it spiked 4.5 percent in June, marking the fastest acceleration of prices it tracks since 1991.

Much of the increases this summer have been from sectors that were hit particularly hard by the pandemic and have since snapped back to high demand, such as used car prices, airfares…
Will Feuer
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