Rising costs draw heat in D.C.

Consumer prices surged at the fastest pace in more than three decades in October as fuel costs picked up, supply chains remained under pressure and rents moved higher — worrying news for economic policy makers at the Federal Reserve and for the Biden White House.

Overall prices rose by 6.2% over the past 12 months, the fastest pace since 1990, and inflation began to accelerate again on a monthly basis.

Prices rose across the board in October, at deli counters and restaurants and car dealerships. The acceleration is an unwelcome development for the Biden administration, which continually pointed out that although price gains were faster than usual, they were slowing down from rapid summertime readings. It is also a policy challenge for the Fed, which is charged with maintaining stable prices and fostering maximum employment.

Inflation rates remain far faster than the 2% annual gains the Fed aims for on average over time.

While the Fed sets its goal using a separate measure of inflation — the personal consumption expenditures index — that too has picked up sharply this year. The consumer price index reports come out faster and help to feed into the central bank’s favored gauge, so they are closely watched by economists and Wall Street investors.

On Wednesday, President Joe Biden acknowledged the rising cost of living, issuing a statement on the heels of the report saying that “reversing this trend is a top priority for me.”

“Many people remain unsettled about the economy, and we all know why: They see higher prices,” he said later in the day, speaking at the Port of Baltimore, having noted that “everything from a gallon of gas to a loaf of bread costs more, and it’s worrisome, even though wages are going up.”

The president’s approval ratings have fallen as consumers feel the pinch of higher prices for gas, groceries and housing. The rising prices also could complicate his ability to push through Congress a large spending bill carrying much of his economic agenda, with some lawmakers expressing concern about the effect more federal spending could have on inflation.

Part of the dilemma is that inflation is not moderating, as many economists had expected it would by the end of 2021. Instead it jumped to 0.9% last month from September, a Labor Department report showed, faster than the prior month’s increase of 0.4% and well above economists’ expectations. So-called core prices, which strip out products such as food and fuel, also climbed more