Core inflation, excluding food and energy, rose 6.6 percent year-on-year. That’s the highest level since 1982, according to U.S. Labor Department data. On a monthly basis, a rise of 0.6 percent. Headline inflation stood at 8.2 percent year-on-year and 0.4 percent from last month. Analysts had expected a less rapid rise in prices in September.
The US Federal Reserve has responded to price increases with its most aggressive monetary policy since the 1980s. However, so far the labor market and consumer demand have remained stable. The unemployment rate hit a five-decade low in September. Companies are also raising wages to attract employees.
Last week’s firm U.S. jobs report and this week’s inflation data set the stage for another sharp 75 basis point rate hike in November.
Commenting on the figures, President Joe Biden acknowledged that “there is more work to be done” in the fight against rising inflation. According to the president, that fight is a high priority.