NEW YORK, Oct. 14 (Xinhua) -- U.S. consumer prices rose more than expected in September, driven by surging gasoline costs, with annual inflation reaching its highest level since May, the Labor Department said Wednesday.
The consumer price index (CPI) rose 0.6 percent from August and 3.7 percent from a year earlier. Economists had forecast an annual increase of 3.6 percent.
Gasoline prices jumped 9.1 percent in September, accounting for more than half of the monthly CPI increase, and were up 34.2 percent from a year earlier. Overall energy prices climbed 5.2 percent for the month, following a 2.1 percent rise in August.
The surge came as the war in Iran continued to disrupt energy supplies from the Middle East, pushing up fuel costs.
Inflationary pressures also extended beyond energy. Core CPI, which excludes volatile food and energy prices, rose 0.3 percent for a second consecutive month and 2.6 percent from a year earlier.
"Underlying price pressures are broadening beyond energy," said Anshul Sharma, chief investment officer at Savvy Wealth, pointing to rising shelter costs and airfares as fuel costs are passed on to consumers.
"This is not a good print for the Federal Reserve," said Tiffany Wilding, an economist at PIMCO, who described the pickup in housing inflation as particularly concerning.
The hotter-than-expected report added pressure on the Federal Reserve ahead of its Oct. 27-28 policy meeting, with investors raising bets on another interest rate hike.
U.S. stock futures fell and Treasury yields rose following the release as investors braced for the prospect of higher interest rates. ■
