Inflation holds grip on the U.S. economy as September rate hits 8.2%

The annual U.S. inflation rate was little changed in September, hitting 8.2% year-over-year compared with August's 8.3% reading as the pace of price increases remains at multidecade highs, causing pain for many U.S. households.

High prices for food, shelter and medical care sent the consumer price index for September up by 0.4% compared to August's 0.1%, according to data from the Bureau of Labor Statistics released Thursday morning.

Inflation remains at the top of Americans' minds going into the last quarter of a year that has seen across-the-board volatility in food, gasoline and energy prices.

While the Biden administration has sought to address the issue through measures like the Inflation Reduction Act, the provisions contained in that law are set to take effect over a period of 10 years, and at least two separate models predict its actual impact on inflation would be statistically insignificant.

So the burden of bridling a stubborn inflation rate sits on the doorstep of the Federal Reserve. The central bank has already increased its benchmark rate five times this year — which included three consecutive 0.75% hikes — in order to make borrowing and spending money more expensive in order to cool off consumer demand.