US consumer prices increased more than expected in September as rents surged by the most since 1990 and the cost of food also rose, reinforcing expectations the Federal Reserve will deliver a fourth 75-basis-point interest rate rise next month.
The report from the Department of Labor on Thursday also showed a measure of underlying inflation posting its biggest annual increase in 40 years as consumers also paid more for healthcare. The data followed on the heels of last week’s strong employment report, which showed solid job gains in September and a drop in the unemployment rate to a pre-pandemic low of 3.5 percent.
