A gauge the Federal Reserve prefers to measure inflation rose 4.9% from a year ago, according to the Commerce Department. This is the biggest gain going back to September 1983.
Along with the inflation numbers, personal income rose 0.3% for the month, a touch lower than the 0.4% estimate. Consumer spending declined 0.6%, less than the 0.7% estimate.
A separate Labor Department data point that Fed officials also watch closely showed total compensation costs for civilian workers increased 4% over the past 12 months. That is the fastest pace in history for the employment cost index, a data set that goes back to the beginning of 2002.
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