US stocks plunged Tuesday following the hotter-than-expected August inflation report. The Dow Jones Industrial Average fell more than 1,200 points to notch its worst day since June 2020. 

August CPI revealed inflation rose 8.3%, compared to the same month in 2021. That is lower than July's 8.5% but higher than the expected 8.1%. The hot reading comes despite falling gas prices.

Core CPI, which doesn't include volatile energy prices and food, increased 6.3% compared to August last year. 

July's CPI reading was 8.5%, and was 9.1% in June, which was the highest level in four decades. 

"One thing was clear after today's report - Treasury Secretary Yellen clearly didn't get a sneak peek at the data," said Michael Reinking, senior market strategist at the New York Stock Exchange. "Today's data was disappointing, especially related to core inflation which showed widespread gains across components."

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