WASHINGTON, Oct. 13 (Xinhua) -- A surge in energy prices in the aftermath of Hurricane Harvey pushed U.S. inflation rate in September to an eight-month high, while the core inflation less food and energy remained muted, according to a report released by Labor Department on Friday.
The latest inflation report comes at a time when the Federal Reserve officials have been debating on the myth of low inflation and whether the U.S. central bank should raise interest rates again in December.
The Consumer Price Index (CPI) rose 0.5 percent in September on a seasonally adjusted basis after advancing 0.4 percent in August, according to the report. Over the last 12 months, the all items index rose 2.2 percent.
Gasoline prices surged 13.1 percent last month because of the supply chain interruption caused by Hurricane Harvey, accounting for 75 percent of the rise in the CPI.
Excluding the volatile food and energy components, the core consumer prices gained 0.1 percent in September. In the 12 months through September, the core CPI increased 1.7 percent.
U.S. core personal consumption expenditures (PCE) price index, a separate inflation gauge compiled by Commerce Department, increased 1.4 percent in August from a year ago. The core PCE index, which is preferred by the Fed, has consistently undershot the Fed's two percent target for more than five years.
"Many participants expressed concern that the low inflation readings this year might reflect not only transitory factors, but also the influence of developments that could prove more persistent," said the Minutes of the Fed's Sept. 19-20 meeting published on Wednesday.
Investors expect that the central bank would likely raise interest rates again in December, while the persistent muted inflation rate could be a major obstacle.
