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

US consumer prices increased more than expected in September and underlying inflation pressures continued to build up, reinforcing expectations that the Federal Reserve will deliver a fourth 75-basis points interest rate hike next month.

The consumer price index rose 0.4% last month after gaining 0.1% in August, the Labor Department said on Thursday.

Economists polled by Reuters had forecast the CPI climbing 0.2%.

In the 12 months through September, the CPI increased 8.2% after rising 8.3% in August. The annual CPI peaked at 9.1% in June, which was the biggest advance since November 1981.

Despite the continued moderation as supply chains