Inflation rises more than expected in September as high prices persist

Inflation rose more than expected in September thanks to a jump in food and housing costs, underscoring the challenge of taming price pressures within the economy.

The Labor Department said Thursday that the consumer price index, a broad measure of the price for everyday goods including gasoline, groceries and rents, rose 0.4% in September from the previous month, more than expected.

Prices climbed 3.7% from the same time last year, matching the August reading and coming in slightly higher than the 3.6% projected by Refinitiv economists. 

Other parts of the report also pointed to a slower retreat for inflation. Core prices, which exclude the more volatile measurements of food and energy, climbed 0.3% last month and 4.1% annually. While both of those figures are lower than previous readings, the monthly core measure climbed faster than expected. 

Stubbornly high inflation has created severe financial pressures for most U.S. households, which are forced to pay more for everyday necessities like food and rent. The burden is disproportionately borne by low-income Americans, whose already-stretched paychecks are heavily affected by price fluctuations.