Core inflation rose to 5.1% in September, according to gauge watched by Fed

Core inflation ticked up in September as measured by the gauge favored by the Federal Reserve, a troubling sign that price pressures are not diminishing despite the central bank's aggressive efforts to tighten monetary policy.

Core inflation, which strips out energy and food prices, rose two-tenths of a percentage point to a 5.1% annual rate, as tracked by the personal consumption expenditures price index, which is more than forecast and higher than August’s 4.9%.

Headline inflation, meanwhile, stayed steady at 6.2%, according to the data released by the Bureau of Economic Analysis Friday morning.