Overview
- The Bureau of Labor Statistics reported that consumer prices rose 0.6% in September and 3.7% year‑over‑year, while core CPI excluding food and energy was up 0.3% for the month and 2.6% annually.
- Gasoline jumped about 9.1% in September and accounted for more than half of the monthly CPI gain, with analysts linking the spike to recent U.S./Israel actions against Iran and disruptions around the Strait of Hormuz that tightened fuel supplies.
- Wholesale inflation accelerated the next day, with the Producer Price Index rising 1.3% month‑to‑month and 6.3% year‑over‑year, and the BLS said much of the goods increase traced back to higher fuel and diesel costs.
- Investors sold stocks and pushed Treasury yields higher, and futures traders sharply raised the odds of a rate hike at the Fed’s Oct. 27–28 meeting, reflecting concern that energy-driven costs are feeding into other categories.
- Higher pump prices shifted consumer spending in September — retail sales rose 0.8% but were largely driven by gasoline — and the hotter reports increase political pressure on the White House in the runup to the Nov. 3 midterm elections.