Consumer Prices Spike 1.2%; Gain is Highest in 25 Years

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rices paid by consumers rose 1.2% in September, the biggest gain in 25 years, while the so-called "core" consumer price index, which excludes food and energy, rose 0.1%, the Labor Department said Friday.

The jump in the consumer price index followed a 0.5% rise in August.

he overall CPI topped analysts’ expectations of a 0.9% gain, Bloomberg reported, while the core rate was less than a forecasted 0.2%.

The CPI is the government's broadest gauge of costs for goods and services. Almost 60% of the CPI covers prices consumers pay for services. If consumer prices are falling, it could reflect a decrease in demand for consumer goods, which decreases the demand for trucking services.

Consumer prices were up 4.7% for the 12 months ended in September, the most since May 1991, while core prices were 2% higher.

Year-over-year CPI was up 3.6% for the 12 months ended in August, while core prices were up 2.1% increase in June, Labor said.

Energy prices soared 12% in September, the biggest jump on record, after rising 5% a month earlier. Gasoline prices jumped 17.9%.

Food prices, which account for about one-fifth of the index, rose 0.2%.

he cost of all goods including cars, apparel and food rose 2.4% last month after rising 1.1% in August.