Inflation heated up in September at a quicker tempo than expected as rising power prices stored stress on costs, bolstering the Federal Reserve’s case for another interest-rate hike this yr.

The Consumer Price Index rose 3.7% over the previous 12 months, heating up from 3.4% the earlier month and above expectations of a 3.6% rise, the Bureau of Labor Statistics said Wednesday. It rose at a 0.6% tempo over the month.

Inflation heated up in September amid rising power prices. ZUMAPRESS.com

Core CPI – which excludes risky food and power costs, giving a higher look at underlying inflation – also heated up to 2.6%, above 2.4% in August and greater than estimates of a 2.5% rise.

Rising power prices amid the conflict in Iran largely drove the inflation studying. The power index is up 20.4% over the previous 12 months.

This is a developing story. Please test back for updates.

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