What happened
The consumer price index released Wednesday showed prices up 3.7% in September from a year earlier, hotter than the 3.6% economists expected and up from 3.4% in August. Core inflation, which excludes food and energy, rose to 2.6%. Gasoline jumped 9.1% in the month, more than half of the overall monthly increase.
CPI has now run above 2%, a widely accepted inflation target, for around 65 consecutive months. A CNBC analysis of Bureau of Labor Statistics data found it is the longest such run of the 21st century; only two streaks since the late 1940s lasted longer. The average reading since early 2021 is about 4.5%.
Consumers expect more: the New York Fed’s survey showed one-year inflation expectations rising to 3.9% in September, the highest in more than three years. Fed officials worry that entrenched expectations could make inflation self-fulfilling and blunt the Fed’s tools.
The Fed raised rates in September, and fed funds futures traders anticipate further hikes in December and in 2027. Meanwhile, inflation has outpaced wage growth in recent months, and University of Michigan consumer sentiment fell to record lows earlier this year.
Quotes are as reported by CNBC. Photos are archival or illustrative; the grocery photo does not depict Olena Nicks.

