Wall Street Today | Fed could weigh historic 100 basis-point hike after inflation scorcher

Surging gasoline prices last month drove the rate of U.S. inflation to a nearly 41-year peak of 9.1%, offering little hope of help soon for Americans suffering from a high cost of living. The consumer price index jumped 1.3% last month, and the so-called core rate of inflation, which omits food and energy, rose by 0.7%.

Federal Reserve officials may debate a historic one percentage-point rate hike later this month after another inflation report piled pressure on the central bank to act. "Everything is in play," Atlanta Fed President Raphael Bostic said on Wednesday, after US consumer prices rose a faster-than-forecast 9.1% in the year through June.

Several parts of the country showed signs of slowdown in recent weeks and price increases remained significant as the U.S. economy continued to modestly expand, the Federal Reserve said in a report. Specifically, business contacts in several districts "noted concerns over an increased risk of a recession" and much of the country saw a pullback in consumer spending.

Oil ended the day little changed after a volatile session in which the latest US inflation report and data showing high prices hitting US fuel demand roiled prices. West Texas Intermediate crude futures eked out a small gain to settle above $96 a barrel. Government figures showing the highest inflation in decades and an unseasonable drop in gasoline demand capped market strength.