New inflation warning sign
America's inflation problem is becoming harder to contain, with new evidence Wednesday that price pressures are extending beyond the war-related energy shock rattling the global economy.
Why it matters: Inflation is squeezing household budgets and dimming hopes for relief.
It is also increasing the prospect that the Fed will have to raise interest rates further.
What they're saying: "Higher energy costs are beginning to seep into broader services prices, increasing the risk that this inflation burst will persist," Fitch Ratings economist Olu Sonola wrote in a note.
The Consumer Price Index report "stands out as the first of the year in which price pressure appeared to be showing up in most corners of the consumption basket at once," Glenmede's Jason Pride wrote.
By the numbers: The CPI rose 0.6% in September from the prior month, accelerating from August's 0.4% increase.
The index increased 3.7% in the 12 months through September, compared with 3.4% in the prior month.
Gasoline prices surged 9% in September, accounting for more than half of the monthly jump in consumer prices.
Core prices, which exclude food and energy, advanced 0.3% for the second consecutive month.
The annual rate accelerated to 2.6% from 2.4%.
The intrigue: Over the past three months, core CPI has risen at a 3.4% annualized rate, up notably from 2% in August — a sign that underlying inflation pressures are strengthening.
Inflation was stubborn in parts of the services economy that are less directly exposed to the energy price surge.
Shelter costs accelerated last month, rising 0.4%, while used car prices climbed 0.7%.
Airfares jumped 1.2% as airlines grappled with soaring jet fuel costs.
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