NEW YORK – Inflation pressures climbed in September to their highest in over five years, according to a report on Friday that suggested the Federal Reserve (search) was right to remain vigilant over price increases.
August's reading was revised down to 120.7.
Over the past few weeks, Fed officials have gone out of their way to remind investors and consumers that they must continue to raise interest rates to ward off inflation.
The survey's annualized growth rate, which smoothes out month-to-month variance, jumped to 6.6 percent from 3.7 percent.
"If the Fed continues to approach policy as an exercise in managing risks, the clear danger remains inflation and not recession," said Lakshman Achuthan, managing director at ECRI, an independent research group.