Washington, DC (WOAY) – The U.S. Labor Department reports the consumer price index rose 0.4% this September after increasing 0.1% in August.
Consumer prices overall increased 8.2% in the last 12 months, higher than economists’ predictions of 8.1%.
The Labor Department also reports prices rose the most for shelter, food, and medical care expenses last month. The food index jumped 0.8% over the month, while the energy index fell 2.1%.
Core-CPI prices increased 6.6% compared to a year ago — a new 40-year-high. Stock futures fell after the CPI report was released this morning.
The latest data arrives weeks after the Federal Reserve reinforced its fight against inflation with a third consecutive rate increase.
The steady climb in prices could signal aggressive rate hikes have had little impact on fighting inflation. Experts expect a fourth rate hike of 0.75% this year.
The federal government has initiated a series of aggressive interest rate hikes in an attempt to slash price increases by slowing the economy and consumer demand.
However, the plan risks the U.S. falling into a recession.