US wholesale prices rose record 8.6% over 12 months

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Associated Press 14 October, 2021 - 08:10am

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

FORT WORTH (CBSDFW.COM/AP) — A federal judge in Texas has extended a ban on United Airlines putting employees on unpaid leave for seeking a medical or religious exemption from the airline’s requirement to get vaccinated against COVID-19.

U.S. District Judge Mark Pittman, in Fort Worth, granted a restraining order on October 13 in favor of employees who are suing the airline over the mandate.

Lawyers for the employees and the airline agreed last month that United wouldn’t put the workers on unpaid leave, but the judge wrote that the agreement will expire before he can rule on the merits of the matter. That would leave “hundreds of workers” at risk of being put on indefinite unpaid leave or forced to get a vaccination that violates their religious beliefs or medical restrictions.

The restraining order expires October 26.

The suing employees are seeking to turn the case into a class-action lawsuit. United says about 2,000 of its 67,000 U.S. employees asked for exemptions from vaccination.

A United spokeswoman said Wednesday that the company was working with vaccine-exempt employees on safety measures including testing, face masks and temporary job reassignments.

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Read full article at Associated Press

'Shadow inflation' is 'all around us,' economist explains

Yahoo Finance 14 October, 2021 - 01:01pm

Generally, inflation occurs when the price of a good increases, so that consumers pay more for what they could previously purchase for a cheaper price. “But there's another way that inflation can happen, and that's when you're paying the same amount, but getting less for your money,” Cole told Yahoo Finance Live. “I think [shadow inflation is] all around us, especially since the pandemic has started. It's been common for people to cut back service in some way because of the pandemic and still continue to charge the same price.”

The Consumer Price Index, which measures price increases in a basket of goods selected by economists, rose by .4% in September (vs .3% expected) and is up 5.4% from the year before.

This most recent bout of inflation, which began as a more concentrated phenomenon among the automobile, airfare, and clothing industries, has permeated throughout consumer staples and housing/utilities sectors in recent months. A recent Goldman Sachs (GS) report projected home prices to increase by 16% by the end of 2022 thanks to continued strong demand and low inventory.

“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,” said Greg McBride, chief financial Analyst at Bankrate.com. “Food and shelter increases together contributed more than half of the seasonally adjusted increase in the CPI. With home prices soaring and rents surging, this may just be the tip of the iceberg.”

A Bankrate survey recently found that 89% of adults have noticed rising prices, and 66% of those noticing higher costs say that they have negatively impacted their personal financial situation.

Even with rising prices at the forefront of the public’s mind, some of the inflation consumers experience has gone under the radar. The products and services being offered in the post-pandemic world are often different from their pre-pandemic versions.

“So look at restaurants, look at hotels, and even look at airfares,” Cole said. “In all of those cases, the products are not quite the same as they used to be. And yet the prices are kind of similar. And if you accounted for all of the differences in quality… and how much you prefer them to their 2019 versions, I think you would find much more inflation than in the estimates put out by the Bureau of Labor statistics. It's just a very hard thing to account for.”

This year’s lower-than-average labor force is a crucial component of many businesses' decisions to raise prices (or keep prices the same for services of lesser value). Estimates have the labor force at a full 5 million to 7 million fewer people than if trends from 2019 had continued.

“And that just means that firms are stretched thin, especially if they're doing additional pandemic safety measures that they weren't doing before,” Cole added. “That's a lot of work to put on a slightly smaller workforce.”

Cole stressed that arriving at accurate estimates for the true toll of inflation is difficult, in part because it requires subjective calls to be made on the part of economists on what a good is worth and whether new versions of a good are of equal value as older versions.

“When it comes to how inflation is doing over 2020 to 2021, I would say that inflation was much worse if you fully accounted for all of the quality losses that we suffered during the pandemic,” he said. “But if the pandemic goes away and hotels and airlines get down their hold time, start doing things like offering fresh towels again and offering room touch-ups, then I would say that that's a shadow deflation.”

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When our sun enters its death throes in about 5 billion years, it will incinerate our planet and then dramatically collapse into a dead ember known as a white dwarf. But the fate of more distant planets, such as Jupiter or Saturn, is less clear. On Wednesday in the journal Nature, astronomers reported observing a tantalizing preview of our solar system’s afterlife: a Jupiter-size planet orbiting a white dwarf some 6,500 light years from here. Known as MOA-2010-BLG-477Lb, the planet occupies a co

The average transaction price for a new vehicle in America hit a record of $45,031 in September. Last month, however, consumer buying preferences were also to blame; KBB reports that "the vehicle mix shifted in September away from lower-priced sedans, compacts and entry-level segments toward more-expensive pickups, SUVs and the luxury market." "Midsize SUV sales jumped in September compared to August and full-size pickup share moved up as well,"  Kayla Reynolds, analyst for Cox Automotive, said in a statement.

Mary Cain claims she was physically and emotionally abused during her time with the Nike Oregon Project.

Amazon knocks up to $150 off the Apple Mac Mini M1 desktop.

People who received a Johnson & Johnson coronavirus vaccine may be better off with a booster shot from Moderna or Pfizer-BioNTech, according to preliminary data from a federal clinical trial published Wednesday. That finding, along with a mixed review by the Food and Drug Administration of the case made by Johnson & Johnson for an authorization of its booster, could lead to a heated debate about how and when to offer additional shots to the 15 million Americans who have received the single-dose

Find out why shoppers are obsessed with these flattering leggings — and score them while they're over 40 percent off.

A dire report released Wednesday by the United Kingdom’s Environment Agency warns that the ravages of climate change have already begun and will force the country to quickly adapt.

The unions for farm equipment manufacturing employees and entertainment technical workers are just two of several groups across the country bargaining for new deals.

Derek Carr spoke for the first time since head coach Jon Gruden submitted his resignation.

How about the tax police first prove they can shake more money out of wealthy tax evaders.

NBA legend and hockey diehard Charles Barkley struggled with goalie gear before getting lit up by Wayne Gretzky in a wild NHL on TNT appearance.

Save big on earbuds that 'bury the AirPods Pro' and get $50 off genius Sleepbuds that help you drift off to dreamland.

TankerTracker's Sam Madani talks to MarketWatch about why he cashed out of oil and has gone 100% on this increasingly scarce commodity.

More than 10,000 Deere & Co. workers went on strike Thursday, the first major walkout at the agricultural machinery giant in more than three decades. “The almost one million UAW retirees and active members stand in solidarity with the striking UAW members at John Deere," UAW President Ray Curry said. Brad Morris, vice president of labor relations for Deere, said the company is "committed to a favorable outcome for our employees, our communities and everyone involved.”

AT&T has been a long time underperformer, but investors have stuck by the stock for its very generous dividends. But the dividend is set to be cut when the spin-off of Warner Media and Discovery is completed next year. So, does the lower stock price make up for the prospect of a lower yield?

I don't buy a lot of stocks. But with so many amazing businesses trading on the public markets, there are a lot that I want to buy. Many factors need to come together for me to press the buy button: the right allocation of paying myself first, an emergency fund, and funds available for investing.

If you're not sure where to start when looking for the next multi-bagger, there are a few key trends you should keep an...

In this article, we discuss the 10 best Jim Cramer stocks to buy. You can skip our detailed analysis of Jim Cramer’s investment philosophy, and go directly to read the 5 Best Jim Cramer Stocks To Buy Today. Jim Cramer is an American investor and media personality. He is a former hedge fund manager and […]

Alibaba stock has begun to rebound from its lows, but investors should pump the brakes before getting too excited.

US September Consumer Price Index: September inflation supports a November taper

FXStreet 13 October, 2021 - 01:48pm

Food and gasoline were the driving facts in US consumer inflation last month, pushing the price index to its highest annual increase in 13 years while the core rate remained stable.

The Consumer Price Index (CPI) rose 0.4% last month after a 0.3% gain in August, reported the Labor Department Wednesday. A 0.3% increase had been predicted by analysts.

Over the last year prices climbed 5.4%, slightly ahead of the 5.3% forecast. It was the largest 12-month increase since July 2008 and the second highest in three decades

Core CPI, excluding food and energy prices, rose 0.2% in September up from 0.1% in August and was unchanged at 4% for the year.  

Food prices climbed 1.2% for the month after a 0.4% increase in August and were 4.5% higher on the year. Meat expenses were up 3.3% in September and 12.6% annually. 

Gasoline prices rose 1.2% last month following a 2.8% increase in August and a 2.4% gain in July, bringing the annual surge to 42.1%. Fuel oil, which heats many older homes, jumped 3.9% in September and is 42.6% more costly on the year.  

Shelter expenses added 0.4% for the month and 3.2% for the year. The homeowners rental equivalent rose 0.4% in September, its biggest monthly increase since June 2006.

Several categories of consumer goods saw losses, underlining the intensity of the generalized increase in the economy, despite sector declines.. 

Used car prices, which had received much attention recently, dropped 0.7% for the month, lowering the 12-month gain to 24.4%. With new cars in short supply due to component and computer chip shortages, prices rose another 1.3% in September, leaving the annual increase at 8.7%.  

Airline fares fell 6.4% in September. 

Clothing prices slipped 1.1% in September while transport costs fell 0.5%. Nevertheless, purchase costs in both sectors were higher on the year, 3.4% and 4.4% respectively.  

With consumer prices for September largely as anticipated, and having avoided a feared acceleration, Treasury yields retreated from their sharp increases of the past three weeks. 

The 10-year yield had fallen 3 basis points to 1.547% by the early afternoon. The 30-year shed 6 points to 2.04%. 

Equites were flat with the Dow falling mere points and the S&P 500 rising about 0.10%. 

The dollar lost ground against all the majors but retained most of its recent gains. 

Markets have been anticipating that the Federal Reserve’s long-bruited taper of its $120 billion a month in bond purchases will be announced at the November 3 meeting

St. Louis Fed President James Bullard said in a Tuesday interview on CNBC that he supports starting the taper process in November and that the bank should be more aggressive in withdrawing economic support. 

Also on Tuesday, Atlanta Fed President Raphael Bostic said the causes of the current inflation “will not be brief.”

These comments were backed up by the minutes of the last  Federal Open Market Committee (FOMC) released at 2 pm which elaborated on the September statement, “If progress continues broadly as expected, the Committee judges that a moderation in the pace of asset purchases may soon be warranted.”

The September CPI numbers have not moved the discussion of the prospective Fed taper in either direction.

Consumer inflation is at its highest level in a generation and the factors driving the price gains, particularly wages and energy costs, are proving to be far more than transitory. 

Labor, component and raw material shortages, shipping delays and consumer demand are all conspiring to drive prices to their highest sustained increases since the1980s. 

The Fed’s anticipated November 3 taper strike remains on track.

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EUR/USD touched a daily high of 1.1624 but seems to be having a difficult time pushing higher in the early American session. The data from the US showed on Thursday that the PPI continued to increase in September and weekly Initial Jobless Claims fell to the lowest level since March 2020.

GBP/USD pair retreated modestly after climbing to a fresh three-week high of 1.3735 but doesn't seem to be having a difficult time staying afloat in the positive territory above 1.3700. The mid-tier data releases from the US failed to trigger a noticeable market reaction. 

US Treasury yields remain depressed near fresh weekly lows, weighing on the greenback. Wall Street is up, backed by better than expected earnings reports from big names. XAU/USD retains its bullish stance, despite being overbought in the near term.

Bitcoin price is struggling to reach the $60,000 psychological level as it continues to consolidate. Ethereum price continues to compress between the $3,387 and $3,623 barriers, lacking directional bias. Ripple price is also stuck below a crucial resistance level at $1.135.

The dollar pulled back from a one-year high area, with US stock markets closing higher on Wednesday and its futures adding in trading in Asia. This performance was a market reaction to inflation data and FOMC meeting minutes.

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