The price of food, gas, rent and many other consumer goods and services rose faster than expected last month, the U.S. Department of Labor announced Thursday.

The consumer price index grew 0.4% in September, exceeding the 0.3% estimate of Dow Jones.

Inflation grew 8.2% for the year ending in September, a drop from 8.3% the previous month and off the high of 9% in June. Nonetheless, inflation is stubbornly hovering around a 40-year high. The Federal Reserve has hiked interest rates five times this year and signaled it plans more increases to stifle inflation.

Excluding gas and food, prices rose 6.6%, the fastest rate since 1982.

Stocks initially dropped after the report's release but rebounded in afternoon trading.

At about 1 p.m. ET, the Dow Jones Industrial Average surged 681.12 points, or 2.33%, to 29,891.97. The S&P 500 rose 66.71 points, or 1.86%, to 3,643.74 and the Nasdaq Composite was up 128.65 points, or 1.23%, to 10,545.75.