U.S. inflation, measured by the consumer price index (CPI), hit a 30-year high in October. Increasing by 6.2%, year over year. October marked a fifth month of gains over 5%, considerably over the pre-COVID target of 2% set by the Federal Reserve.
For the month of October, the print was a seasonally-adjusted 0.9%, more than double the 0.4% rise for September.
The CPI measures what consumers pay for goods and services. The core price index, which excludes the often-volatile categories of food and energy, climbed 4.6% in October from a year earlier, higher than September’s 4% rise and the largest increase since 1991.
Price increases were broad-based, with higher costs for new and used autos, gasoline and other energy costs, furniture, rent and medical care, the U.S. Labor Department said. Food prices for both groceries and dining out rose by the most in decades. Notably, prices fell for airline fares and alcohol.
Inflation was pressured by sky-high energy prices and ongoing supply chain backlogs. Gasoline prices surged 49.6% from a year earlier, pushing up prices of just about everything else.
Regionally, the Southern part of the United States saw the largest gains. Markets fell on the news, and futures were trading up in pre-market trade.