2017.10.1519:21:00UTC+00U.S. Consumer Prices Surge in Wake of Hurricanes

U.S. consumer prices posted their biggest gain in eight months in September, bolstered by gasoline prices which surged in the aftermath of hurricanes which caused production disruptions at the Gulf Coast.

According to the Labor Department's Consumer Price index rose 0.5 percent in the previous month after increasing 0.4 percent in the preceding month. The monthly increase in September was the biggest increase since January and fueled the year-on-year gain in the CPI to 2.2 percent from 1.9 percent in August.

In September, gasoline prices increased 13.1 percent, representing 75 percent of the rise in the CPI. The surge in gasoline prices was the biggest gain since June 2009 and come after a 6.3 percent rise in August.

The Labor Department said Hurricane Harvey's impact on the refinery capacity in the Gulf Coast was a likely factor in the rise of gasoline prices last month.

However, outside gasoline prices, price pressures were genial. Core consumer prices marginally rose by 0.1 percent as the increase in rental rates weakened and the price of new motor vehicles, furniture and medical care fell. In August, the core CPI advanced 0.2 percent. At an annual rate, core CPI increased 1.7 percent in September.