The Bureau of Labor Statistics reported Thursday that the Consumer Price Index, which measures the costs of goods and services across the U.S. economy, increased .2 percent in September and 2.4 percent over the last 12 months.
Both of the readings were 0.1 percentage point above what economists expected.
🚨 NEW:
— Trump War Room (@TrumpWarRoom) October 10, 2024
Inflation "HOTTER THAN ANTICIPATED" at 2.4% over last year.
Overall prices are up 20.5% since Kamala took office, while real average weekly earnings are down 3.4%. pic.twitter.com/aP8fikXxRg
After stripping out food and fuel costs, which can be volatile from month to month, a “core” inflation measure picked up slightly to 3.3 percent, up from 3.2 percent previously. […]
Here’s what else to know about the report:
The big picture: The overall C.P.I. index has been cooling substantially from a peak of 9.1 percent in the summer of 2022. And both this index and a related measure — the Federal Reserve’s preferred Personal Consumption Expenditures index — have been creeping closer to the 2 percent annual rate that the central bank aims for over time.
- What it means for the Fed and interest rates: Recent progress on inflation has been welcome news for the central bank. Policymakers cut interest rates in September for the first time in more than four years, lowering them by an unusually large half percentage point. Fed policymakers have signaled that they expect to lower interest rates further as inflation cools. They projected in September that they would make two more quarter-point rate cuts this year.
- Will this report change the Fed’s thinking? While September’s inflation report was bumpier than expected, it was probably not enough of a stalling in progress to upend the outlook for the Fed: Investors still widely expect a cut in November. But the inflation data probably dispels any lingering suspicion that the central bank might opt for a larger rate reduction at its upcoming meeting — already a very slim prospect. “The Fed doesn’t need to do half-point rate cuts, because inflation is still somewhat of a risk,” Mr. Goldberg said. (The New York Times)
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The Job Creators Network said the latest report is a sign the current administration could't get inflation under control and shows Harris does not deserve a promotion.
"In the last reading before the election, CPI came in hot and above expectations, revealing the Biden-Harris administration was never able to get this issue under control and back to the Federal Reserve's target rate," said JCN CEO Alfredo Ortiz. "Under the Biden-Harris administration, inflation increased by a total of 21%. In other words, the value of the dollars in American wallets has declined by one-fifth, preventing ordinary people from making ends meet.
"This alone means Kamala Harris does not deserve a promotion to the Oval Office," his statement continued. "She cast the tiebreaking vote in $3 trillion of unnecessary deficit spending that bid up prices and diluted the currency. Pro-growth conservatives who believe in a sound dollar, economic growth, and deficit reduction are urgently needed in Congress and the White House to make America affordable again."
🚨SINCE KAMALA TOOK OFFICE
— Jacki Kotkiewicz (@jackikotkiewicz) October 10, 2024
Gas: +38.2%
Electricity: +31.3%
Fuel oil: +37.4%
Airfare: +24.5%
Hotels: +42.4%
Groceries: +22.1%
Eggs: +69.2%
Baby food: +31%
K-12 food: +69.7%
Rent: +22.9%
Transportation: +31.1%
Car insurance: +56.5%
Real average weekly earnings: -3.4%
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