U.S. CPI climbs to 3.7% year-over-year, driven by soaring gasoline prices

The Labor Department reported that the consumer price index rose 3.7% over the 12 months through September, surpassing analysts' predictions. On a month-to-month basis, CPI climbed 0.6% after a 0.4% increase in August, driven primarily by a 9.1% rise in gasoline prices, which contributed more than half of the total monthly gain. The overall energy index rose 5.2% in September, while energy prices have risen 20.4% over the past year, with gasoline up 34.2%.

Core inflation, which excludes food and energy, increased 0.3% for the month and 2.6% year-over-year, edging above the 2.5% estimate. Shelter costs within the core basket rose modestly, and other categories such as airline fares, used vehicles and recreation also posted gains. Treasury yields moved higher following the report, and the data arrive just weeks before the Federal Reserve’s next policy meeting.