Core US inflation rises to 40-year high, securing big Fed hike

A pedestrian carries shopping bags in San Francisco, California, US, on Wednesday, June 1, 2022. Photographer: David Paul Morris/Bloomberg

NEW YORK: A key gauge of US consumer prices advanced to a 40-year high in September, underscoring persistent, elevated inflation that’s squeezing households and pushing the Federal Reserve (Fed) toward another steep interest-rate hike.

The core consumer price index (CPI), which excludes food and energy, increased 6.6% from a year ago, the highest level since 1982, Labour Department data showed yesterday.