Consumer inflation continues surge in September

U.S. consumer inflation remained in an upswing in September, led by a surge in energy, housing and food costs, according to data released Wednesday by the Labor Department.

The Consumer Price Index rose 0.4 percent in September. Year-over-year prices surged 5.4 percent, remaining well way above the Fed's desired level. Excluding food and energy, so-called core prices were up 4 percent in the 12 months through September.

The only items to see price drops last month were apparel and airline fares.

And inflation is showing little sign of slowing down.

Oil prices are at 7-year highs...

a tight labor market is pushing wage inflation even higher...

and supply disruptions haven't eased, leading to supply shortages and higher prices for goods and services.

Federal Reserve chairman Jerome Powell has called the burst of inflation "transitory" but nearly two years into the health crisis and inflation has yet to recede.

The continued string of too-hot-to-handle inflation numbers cements the likelihood the Federal Reserve will use its November meeting to announce a scale-back of its $120 billion monthly bond-buying program.

Fed watchers now think the timetable for the start of rates hikes has moved up.

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