Consumer prices rose 0.4% in September and were up 8.2% from a year ago, according to BLS data released Thursday.
Excluding food and energy, the core consumer price index accelerated 0.6% and 6.6%, respectively. The yearly gain for core was the highest since August 1982.
Worker wages took another hit, falling 0.1% monthly and 3% year over year when adjusted for inflation.
Markets now expect the Fed could institute consecutive 0.75 percentage point rate hikes in November and December.