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Inflation much higher then expected

U.S. Sept. CPI surges 1.2%, most in 25 years By Rex Nutting
WASHINGTON (MarketWatch) - U.S. consumer inflation surged at the fastest pace in more than 25 years in September, rising a bigger-than-expected 1.2%, the Labor Department said Friday. A record 12% rise in energy prices fueled the historic jump in consumer price index, but core inflation - which excludes food and energy - increased just 0.1%. Consumer inflation has now risen 4.7% in the past 12 months, the highest since 1991. Core inflation is up 2% in the past year, down from 2.1% in August. The report should keep the Federal Reserve on track for more interest rates hikes at coming meetings. Economists were expecting the CPI to rise 0.9% and the core CPI to rise 0.2%.