Consumer prices surged in September by the largest amount in more than 25 years as hurricanes Katrina and Rita sent energy prices soaring at the fastest pace on record.
The Labor Department reported Friday that inflation jumped 1.2 percent last month. It said that 90 percent of that increase came from a record-setting 12 percent surge in energy prices which reflected gasoline prices that briefly topped $3 per gallon last month after widespread shutdowns of refineries and oil and natural gas platforms along the Gulf Coast.
Meanwhile, the Federal Reserve reported that the devastating hurricanes sent output at the nation’s factories, mines and utilities plunging by 1.3 percent in September, the biggest one-month drop in more than 23 years.
In other economic news, the Commerce Department reported that retail sales managed to post a small increase of 0.2 percent in September. However, that rise came after a huge 1.9 percent plunge in retail sales in August.
