Wall Street Today | Inflation Report Seals Case for 0.75-Point Fed Rate Rise in November

A closely watched measure of US consumer prices rose by more than forecast to a 40-year high in September, pressuring the Fed to raise interest rates even more aggressively to stamp out persistent inflation. The core consumer price index, which excludes food and energy, increased 6.6% from a year ago, the highest level since 1982, Labor Department data showed Thursday.

Another uncomfortably high inflation reading for September is likely to keep the Federal Reserve on track to increase interest rates by 0.75 percentage point at its meeting next month.

Gas bills in September were about 33% higher than a year earlier to chalk up an 18th consecutive double-digit percentage gain, according to Labor Department data. That's the longest streak in more than three decades. Electric bills, which rose 15.5% last month, are on a seven-month streak of double-digit gains, the longest run in 16 years.

Banks could be about to deluge the market with more bonds after they post quarterly results, borrowing at a breakneck pace even as other blue-chip companies pull back, and bondholders could suffer in the process.