September CPI report shows inflation accelerated to 3.7% as energy costs soared

Inflation accelerated in September across the U.S., rising to an annual rate of 3.7% as energy costs surged, according to new government data. Economists had expected 3.6%. The CPI followed two months at 3.4%. Core CPI, excluding volatile energy and gas, increased 2.6% year over year, up from 2.4% in August and above the 2.5% forecast. Gasoline prices rose 9.1% from the prior month and accounted for more than half of the monthly CPI increase. Energy prices were up 20.4% year over year, with gasoline up 34.2%. The national gas average was $4.33 on Wednesday, while diesel hit a record $6.29. Airline fares rose 22.4% annually.