Fed Worried About Inflation Risk as It Firmed Up Tapering Plan

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The Wall Street Journal 13 October, 2021 - 04:26pm 21 views

What is the CPI for September 2021?

PressOffice@bls.gov CONSUMER PRICE INDEX – SEPTEMBER 2021 The Consumer Price Index for All Urban Consumers (CPI-U) increased 0.4 percent in September on a seasonally adjusted basis after rising 0.3 percent in August, the U.S. Bureau of Labor Statistics reported today. bls.govConsumer Price Index Summary

Inflation surges by most in 13 years as energy prices spike

Fox Business 13 October, 2021 - 05:40pm

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Adviser Investments CIO Jim Lowell says he forecasts inflation will stick around for 'at least a quarter or two,' noting that a global supply constraint is behind the surge. 

U.S. consumer prices last month accelerated at their fastest annual pace in 13 years as energy prices surged.  

The consumer index price index rose 5.4% year over year in September, according to the Labor Department, matching the July reading for the hottest print since 2008. Prices increased 0.4% month over month. 

Analysts surveyed by Refinitiv were expecting prices to rise 5.3% annually and 0.3% in September. 

"Consumer prices continue to rise, particularly as demand driven by people returning to post-vaccination life outstrips supply that is increasingly constrained by logistics and labor shortages," said Brian Crosby, managing partner at Traub Capital Partners. "We see it every day." 

Energy prices climbed 1.3% in September and are now up 24.8% over the past year. 

Food prices, meanwhile, jumped 0.9% last month and are now up 4.6% annually. Prices for  meats, poultry, fish, and eggs, have climbed 10.5% this year while beef prices are up 17.6%. 

Core prices, which exclude food and energy, ticked up 0.2% in September and 4% annually, matching analysts' expectations.  

The report puts next month's Federal Reserve meeting in focus after the central bank said in September that it could soon begin to taper its asset purchases, but that rate hikes were farther out on the horizon. 

Federal Reserve Chairman Jerome Powell has said the recent bout of inflation is "transitory" and that price pressures will ease over time as supply chain bottlenecks caused by COVID-19 are alleviated. However, that narrative has been challenged by some Fed members. 

"You’ll notice I brought a prop to the lectern. It’s a jar with the word "transitory" written on it," Atlanta Fed President Raphael Bostic, a voting Federal Open Market Committee member, told the Peterson Institute of International Economics on Tuesday. "This has become a swear word to my staff and me over the past few months. Say ‘transitory’ and you have to put a dollar in the jar."

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Prices continue to rise—here's what's getting the most expensive

CNBC 13 October, 2021 - 05:40pm

Consumers are paying a little bit more for just about everything than they did a month ago, and significantly more than they did for the same goods in 2020.

The consumer price index, which measures changes in how much Americans pay for certain goods and services, rose 0.4% in September, the Labor Department reported Wednesday, driven largely by increases in food, shelter and gasoline. Year-over-year, prices increased 5.4%, the largest jump since January 1991.

It's a continuation of an inflationary trend consumers have experienced for nearly all of 2021. Here's how much prices have increased over the past year in key categories, according to the Labor Department:

The swings in price can largely be attributed to the Covid-19 pandemic, for a number of reasons. Car prices, for example, are being pushed up thanks to a combination of an ongoing chip shortage and low inventory, among other factors. At the same time, airfare and other travel expenses look so much more expensive today relative to 2020 because no one was flying a year ago, thus depressing prices.

While economists have insisted for months that inflation is temporary, prices have continued ticking up. Everyday Americans are left feeling the sting in their bank account today: Wages grew just 4.6% in September compared to a year prior, far below the 5.4% year-over-year price increase.

"While some of the so-called transitory factors like used car prices, airfares and apparel continue to ease after sharp run-ups in earlier months, inflation is broadening out," says Greg McBride, chief financial analyst at Bankrate.

McBride says that increased housing prices are especially worrisome for the average family. "The rise in shelter costs will exacerbate the negative financial impact so many households are feeling from higher prices," he says.

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Wage Growth Is Great. The Long-Term Inflation It Creates Isn't.

Bloomberg 13 October, 2021 - 05:40pm

Consumers are paying a little bit more for just about everything than they did a month ago, and significantly more than they did for the same goods in 2020.

The consumer price index, which measures changes in how much Americans pay for certain goods and services, rose 0.4% in September, the Labor Department reported Wednesday, driven largely by increases in food, shelter and gasoline. Year-over-year, prices increased 5.4%, the largest jump since January 1991.

It's a continuation of an inflationary trend consumers have experienced for nearly all of 2021. Here's how much prices have increased over the past year in key categories, according to the Labor Department:

The swings in price can largely be attributed to the Covid-19 pandemic, for a number of reasons. Car prices, for example, are being pushed up thanks to a combination of an ongoing chip shortage and low inventory, among other factors. At the same time, airfare and other travel expenses look so much more expensive today relative to 2020 because no one was flying a year ago, thus depressing prices.

While economists have insisted for months that inflation is temporary, prices have continued ticking up. Everyday Americans are left feeling the sting in their bank account today: Wages grew just 4.6% in September compared to a year prior, far below the 5.4% year-over-year price increase.

"While some of the so-called transitory factors like used car prices, airfares and apparel continue to ease after sharp run-ups in earlier months, inflation is broadening out," says Greg McBride, chief financial analyst at Bankrate.

McBride says that increased housing prices are especially worrisome for the average family. "The rise in shelter costs will exacerbate the negative financial impact so many households are feeling from higher prices," he says.

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Get Make It newsletters delivered to your inbox

Learn more about the world of CNBC Make It

U.S. Consumer Prices Rise More Than Expected

The Washington Post 13 October, 2021 - 05:40pm

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