WASHINGTON, Oct. 14 (Xinhua) -- U.S. inflation accelerated in September, according to data released Wednesday by the U.S. Bureau of Labor Statistics.
The Consumer Price Index (CPI) jumped a hefty 3.7 percent year on year, exceeding Wall Street estimates of 3.6 percent and rising from the previous month's 3.4 percent.
Headline inflation increased by 0.6 percent month on month, driven primarily by a 9.1 percent surge in gasoline prices, according to the data.
Core CPI, which strips out volatile food and energy costs, also ticked up, climbing 2.6 percent over the last 12 months.
Price increases for shelter, car repairs and medical services rose at a time when Americans have been reeling from price hikes since inflation took hold in 2021.
Some experts noted that inflation is ramping up rather than tamping down.
Dean Baker, a macroeconomist and co-founder of the Center for Economic and Policy Research, told Xinhua, "Inflation is getting higher, not lower and it's in the core, not just energy ... If you're the Fed looking to hit a 2 percent target, you're going the wrong way."
The news caused markets to drop on Wednesday, on fears that a rate cut is even further off than investors had expected. Some experts said the Fed would have to raise rates to get inflation down.
Gary Hufbauer, a nonresident senior fellow at the Peterson Institute for International Economics, said "the outlook is for continued high PCE inflation, near 4 percent. To push the rate down, the Fed needs to increase the policy rate to near 5 percent."
Meanwhile, the midterm elections are just around the corner and Republicans are expected to take the brunt of voters' blame for high prices.
Some experts noted that inflation remains a risk to the GOP, the party in power.
Brookings Institution Senior Fellow Darrell West said "inflation remains painfully high and that poses serious risks for Republicans in November."
However, even if Democrats grab control of Congress, prices are unlikely to come down this year.
While halting the Iran war could bring down energy prices, addressing underlying inflation would require significant interest rate hikes, an unlikely move by the Fed given concerns that aggressive tightening could trigger an economic downturn. ■
