The highest inflation in a decade worsened in October as the supply-chain crisis showed no signs of stopping

• The Consumer Price Index gained 0.9% in October, overshooting the median estimate of 0.6%.
• The reading also marks an acceleration from September's price growth of 0.4%.

Inflation swung higher in October, signaling the global supply-chain crisis kept prices surging at the fastest rate in decades.

The Consumer Price Index - a popular measure of countrywide inflation - gained 0.9% last month, the Bureau of Labor Statistics said Wednesday. Economists surveyed by Bloomberg expected the index to climb 0.6%. The reading marks an acceleration from the 0.4% gain seen in September and the largest one-month jump since 2008.

On a year-over-year basis, CPI rose 6.2%. That's the fastest rate of annual inflation since 1990 and also showed price growth picking up from September's one-year pace.

Core CPI, which excludes volatile food and energy prices, gained 0.6% in October, according to the report. That exceeded the median forecast for a 0.4% jump.

The Wednesday report shows inflation rebounding in October as the global supply tangle raged on. Shipping delays and port logjams have strangled businesses in recent months, leaving firms unable to match Americans' strong spending. The worldwide energy crunch also lifted CPI as countries scrambled to generate ample power.

Supply-chain problems have been "larger and longer-lasting than anticipated" and kept inflation high, Fed Chair Jerome Powell said in a November 3 press conference.

As companies have continued to lift prices, other pockets of the economy are healing faster. The US added 531,000 nonfarm payrolls in October, according to data out Friday. That handily exceeded forecasts and marked a strong rebound in the labor market's recovery after it stumbled during the Delta wave. The latest jobless-claims data hinted hiring held strong into November, and with the holiday season approaching, greater spending stands to juice the rebound even more.

Paying big for food, gas, and cars

The October price surge was mainly driven by ballooning energy prices. The segment rose 4.8% last month, beating out food and services. Fuel oil saw the largest price jump of any category with a 12.3% gain in October alone. Gasoline prices and utility gas prices rose 6.1% and 6.6%, respectively.

Prices for food rose 0.9%, matching the September rate and bringing the year-over-year jump to 5.3%. All six major grocery-food groups gained through the month, and the index for meat, poultry, and fish notched a 1.7% leap.

Used car prices rose for the first time since July. The category saw the most dramatic price gains of any group earlier in the year, with monthly increases surpassing 10% in April and June. Price growth was weaker at 2.5% in October, but suggests the rapid vehicle inflation could return.

Clothing prices saw the smallest growth throughout last month, with prices holding flat after falling 1.1% in September. Shelter, transportation, and medical care costs all saw prices rise less than 1%.

The report shows the country still struggling to handle inflation despite a broad economic recovery. The Biden administration and the Federal Reserve have both doubled-down on the view that inflation will prove transitory. Despite price growth running above prior forecasts, inflation should cool off next year, Powell said at a press conference last week.

"As the pandemic subsides, supply bottlenecks will abate. As that happens inflation will decline from elevated levels," he said. "The timing of that is uncertain. We should see inflation moving down by the second or third quarter."