Consumers prices jumped 2.1% over the last 12 months (not seasonally-adjusted), the U.S. Bureau of Labor Statistics reported today.
The seasonally adjusted increase in the all items index was broad-based, with increases in the indexes for gasoline, shelter, apparel, medical care, and food all contributing.
The index for all items less food and energy rose 1.8 percent over the past year, while the energy index increased 5.5 percent and the food index advanced 1.7 percent.
The CPI increase was taken as a signal of higher inflation yet to come by Wall Street.
The Dow Jones Industrial Average fell 450 points on the news because investors worry that the Federal Reserve will raise interest rates to hold inflation pressures at bay.
As stocks fell, bond-yields rose over the possibility of higher interest rates.