Lowering interest rates just ahead of an election, when we are in a period of higher than desired inflation seemed like a stupid idea. That stupid idea has now been proven to be really dumb with the release of the latest data. Spending cuts, to reduce both the national deficit and start to reign in the national debt may be the only remedy but it does not look like the administration is willing to try common sense solutions.
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Food and Shelter Costs Push Inflation Higher Than Expected
Core inflation unexpectedly accelerated in September. | Economy
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Food and Shelter Costs Push Inflation Higher Than Expected
John Carney10 Oct 2024
U.S. inflation is running hotter than expected.
The consumer price index rose in September 2.4 percent from a year earlier, the Department of Labor said Thursday. Economists had forecast a 2.3 percent increase in consumer prices after the August reading
Compared with a month earlier, prices rose 0.2 percent. That’s an acceleration from the 0.1 percent recorded in August.
Core CPI, a measure that excludes food and energy prices, rose 0.3 percent for the month. Compared with a year ago, core prices were up 3.3 percent. Economists had forecast the year-over-year figure would rise 3.2 percent, matching the prior month.
Three-quarters of the rise in CPI was due to rising food and shelter prices. Food prices rose 0.4 percent from a month earlier, bringing the annual gain to 2.3 percent. Shelter prices rose 0.2, the smallest gain in several months, and are up 4.9 percent from a year earlier.