Banrion Capital Management founder & CEO Sana Sissel analyzes the Federal Reserve’s approach to Inflation, the impact of AI on job markets and more about ‘making money.’
Inflation remained high September also sits well above the Federal Reserve’s target rate as policymakers prepare to meet next week to decide on their next rate hike.
The Bureau of Labor Statistics on Friday said Consumer price index (CPI) – A broad measure of how much daily goods such as fuel, shops and rental costs – Rose 0.3% in September compared to the previous month from 2.9% in August. It was the highest headline CPI reading since January, when the CPIDE CPI of 3% was also 3%.
The monthly figure was in line with economic expectations polled by the LSEG, while the annual figure was slightly lower than expected.
The so-called CORE PRINICS price, which releases dynamic estimates of fuel and food to better assess price growth trends, was up 0.2% from last month and 3% from last year. Both figures were slightly cooler than economic expectations.
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High inflation has created severe financial pressures in recent years for many US households, who are forced to pay more for daily necessities such as food and rent. Price hikes are especially difficult for low-income Americans, because they often spend money on their opportunities that are out of date and have little flexibility to save money.
Food prices rose 0.2% in September and are up 3.1% for one year. Food at home increased by 0.3% monthly and was 2.7% higher than last year, while food away from home index rose by 0.1% from last month and is 3.7% higher than last year.
The meat, poultry and fish index was up 0.8% in September and up 6% from a year ago. Beef and Veal prices were up 1.2% for the month and up 14.7% from last year. Last year, Pork prices increased by 1.6% and chickens were up 1.4%, while fish prices and countries increased by 29.
Egg prices declined 4.7% monthly and are 1.3% lower than last year. Fruits and vegetables index shows prices in September and increased one year by 1.3%.
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Headline CPI inflation hits 3% in September, the highest reading since January. (Photos by Robert Nickelserberg/Getty Images/Getty Images)
Energy prices rose 1.5% in September after rising 0.7% in August, and are 2.8% higher than a year ago. The fuel index rose 4.1% in September, although it was down 0.4% from a year ago. Electricity prices declined 0.5% in the month and increased 5.1% last year.
Transportation prices rose 0.3% in September and rose 2.5% from a year ago. Vehicle maintenance and repair costs increased by 0.2% and increased by 7.7% over the previous year. Airline Fares Rose 2.7% for the month and are up 3.2% from last year.
Home prices rose 0.2% in the month and are up 3.6% from a year ago. Tenants and home insurance costs jumped 1.2% in September and are up 7.5% year over year.
The September CPI report was delayed to Oct. 15 due to the ongoing government shutdown, as BLS employees initially sang – although they were later reminded to end this report (collar) of social security.
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Federal Reserve Chair Jerome Powell noted the weakness of the labor market and said policymakers remain mindful of inflation concerns. (Kent Nishimura/Getty Images/Getty Images)
The inflation data comes as the Federal Reserve is set to hold its next monetary policy meeting next week. HOLCOMAS is expected to cut interest rates despite rising rates remaining above the 4% target due to concerns about a weak labor market. Inflation had been softening towards 2% earlier in the year, but the impact of the cost price passed on to consumers was far from the target.
“The impact from the tax rates is felt more in the very low consumption. The effects of the tax rates will increase for a long time where they stay. In the end, we believe that the rate of passing is about 75% higher than the 50% we have seen so far.”
“The CPI is much cooler than the CPI we expect that we have seen all the private data during the shutdown of governments – Whether the financial market is emerging or the arvices of Entner, Chief Stractiost Stratestiost for Morgan Stanley Wealth Management. “Because the fed focused on the management of the ‘risky’ risk, which should translate into another level decided next week, and probably it will follow.”
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Markets still expect the Fed to cut its benchmark interest rate by 25 basis points at next week’s meeting, with the CME FEDWatch Tool showing a 96.7% chance of a rate cut.
