Inflation Jumps to 3.7% in Troubling Sign for Mortgage Rates

Inflation rose last month, driven by surging gas prices as the war with Iran continues to impact oil prices, according to the latest Consumer Price Index report.Overall prices rose 3.7% for the 12 months through September, up from a 3.4% annual increase in August, according to data released by the U.S. Bureau of Labor Statistics on Wednesday. CPI measures the average costs consumers pay for a range of goods including food, energy, commodities and services.On a monthly basis, overall prices rose 0.6%, driven by a 9.1% surge in gasoline prices. That's up from a 0.4% monthly increase in August. It will put upward pressure on mortgage rates, and add pressure on the Federal Reserve to further increase the benchmark interest rate.Energy prices have risen sharply, with gasoline up 34.2% year over year. Electricity, natural gas and other energy expenses have grown as well. Shelter costs also continued to rise, with that category up 3.2% from a year ago.Prices for broad range of other kinds of goods, used cars and trucks, education, airline fares, medical care, and apparel among them, also rose. Freddie Mac mortgage rates went from 6.66% in late August to 7.4% now, and even a surprise bump ...