Economists may have been surprised by the jump in August inflation because they were looking primarily at the cost of energy sharply declining. But consumers knew it was still costing them more to put food on the table and buy clothes, cars, and medications. So-called core costs surged almost 7% for the month and food costs spiked to 11.4%, the largest 12-month increase since 1979.

The stock market reacted to the news as you'd expect with the Dow Jones Industrial Average plummeting 1,300 points, or 4%, and the S&P 500 losing a similar percentage with just five stocks in the popular index finishing in positive territory. 

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Source Fool.com