(Bloomberg). September saw a rise in prices paid by U.S. customers, exceeding expectations. This reflects a slower pace of economic growth and underlines the persistent inflationary pressures.

According to data from the Labor Department, Wednesday’s release of Labor Department data showed that August saw a rise in consumer prices. Comparable to August 2008, CPI rose by 0.2%, marking the biggest annual gain since 2008. Core inflation, which excludes volatile energy and food components, rose by 0.1% from the previous month.

According to a Bloomberg Survey of Economists, the median expectation was for an overall 0.3% increase and core 0.2% increases in monthly rates.

Producers have seen their costs rise sharply due to unprecedented shipping difficulties, material shortages, rising wages, and high commodity prices. Many of these costs have been passed on to consumers. This has led to persistent inflation that many economists, including the Federal Reserve, had not anticipated.

The increase in prices last month was due to rising food and shelter costs. Meanwhile, the prices of used cars and truck, apparel, and airfares dropped.

The report will likely reinforce the Fed’s inclination to soon start tapering its asset purchases, especially as the supply-chain challenges plaguing businesses show little signs of abating. Minutes from last month’s Federal Open Market Committee meeting — out Wednesday afternoon — will provide further insight on policy makers’ views toward progress on employment and inflation goals for tapering.

A New York Fed survey out Tuesday showed U.S. consumers’ expectations for inflation continued to rise in September, with 1-year and 3-year expectations accelerating to record highs.

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