Hotter inflation could force Fed to move rate hike plans to October

Inflation heated up in September, as the Bureau of Labor Statistics’s Consumer Price Index jumped 3.7% on an annual basis in September, up from an annual jump of 3.4% in August. This increase came as the energy index rose 20.4% annually in September as the gasoline index jumped 34.2% annually. Meanwhile the food index was up 2.5% year-over-year in September. Other indexes with notable increases over the past 12 months include airline fares (+22.4%), recreation (+2.8%), medical care (+1.5%) and education (+3.8%). Core inflation, otherwise known as the all items less food and energy index, rose 2.6% annually, up from a 2.4% jump in August. Month-over-month, the all items index rose 0.6% in September, up from a 0.4% monthly jump in August. This comes as the gasoline index was up 9.1% month-over-month, accounting for over half of the all items monthly jump. Overall, the energy index was up 5.2% from a month prior, up significantly from a 2.1% monthly increase in August. The index for food remained unchanged from a month prior. Core inflation posted a 0.3% increase in September, the same as in August. Indexes that rose on a monthly basis in September included recreation (0.5%), used car...