How many signs of the apocolapse does one country need?

Consumer prices surge, driven by energy costs
September increase of 1.2 percent largest in 25 years

WASHINGTON - 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. And sky-high oil and natural gas prices appear to be dampening Americans' economic outlook, as consumer sentiment fell in October to its lowest level since 1992.

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.

The White House downplayed the report.

The sharp jump in consumer prices in September helped to push next year’s cost of living adjustment for 48 million Social Security recipients to 4.1 percent, the biggest advance since 1991.

Separately, a check of consumer sentiment closely followed in the financial markets showed a disappointing decline. Sentiment fell unexpectedly in early October to its lowest level in 13 years, as high gasoline prices and the fallout from hurricane damage continued to take their toll, the University of Michigan’s preliminary October index of consumer sentiment showed.

The report on consumer prices showed that energy prices shot up by 12 percent, led by a 17.9 percent surge in gasoline prices. Natural gas prices rose by 12.1 percent rise and home heating oil prices jumped 12.7 percent. The government this week warned homeowners to expect heating bills to soar this winter.

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