US inflation beats forecasts as energy costs surge

The US consumer price index rose 3.7% year-over-year in September, exceeding the 3.6% forecast, driven by surging energy costs. This marks the steepest monthly increase in five months. Gasoline prices jumped 9.1% month-over-month, accounting for over half of the total increase, while fuel oil rose 15.3%. Core CPI, excluding food and energy, also beat expectations at 2.6% annually and 0.3% monthly. Treasury yields spiked immediately, with the 10-year note rising to 5.304% and the 2-year to 4.916%. Bloomberg noted inflation pressures are broadening across the economy beyond just energy.