Inflation Holds Steady in September While Concerns Grow Over Ongoing Price Hikes

Consumer price inflation was 3.7% in September, matching August's pace and slightly higher than expected. Core inflation excluding food and fuel also matched forecasts at 4.1%.

Price increases accelerated 0.4% from August to September, faster than expected. Housing costs and prices for services like hotels and recreation picked up.

Signs of stalling progress on inflation pushed stocks down and bond yields up as investors worried rate hikes may continue.

Over 70 million Americans on Social Security will get a 3.2% benefit increase in 2023 to help cope with high inflation.

Fed officials see signs of resilience in consumer spending and hiring that may enable further price hikes, so they are cautious about pausing rate increases.