New inflation warning sign
Summary
Inflation in the U.S. is increasing beyond just energy prices and is affecting many types of goods and services. This rise in overall prices makes it harder for families to afford things and raises the chance that the Federal Reserve will increase interest rates again soon.Key Facts
- The Consumer Price Index (CPI) rose 0.6% in September, faster than August's 0.4% increase.
- Gasoline prices jumped 9% in September, making up over half of the monthly rise in prices.
- Core prices, which exclude food and energy, increased 0.3% for the second month in a row.
- Over the last three months, core CPI rose at a 3.4% annual rate, showing stronger inflation pressure.
- Prices for shelter, used cars, and airfares all increased in September.
- A narrower inflation measure called "supercore," which excludes housing and energy, rose at nearly a 4.6% annual rate in three months.
- Federal Reserve officials had downplayed the need for an immediate interest rate hike, but the new data has increased chances of a rate increase at the Fed meeting in late October.
- Inflation has outpaced wage growth for six months, lowering workers' real earnings.
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