This is very troubling — the trend is very troubling.Blerina Uruci, economist at investment management company T. Rowe Price, on new data reflecting a quick increase in inflation during September.
Big Picture: High inflation means your dollar buys you less. U.S. government data from September reflected an increasing rate of inflation, which continues to sit at its highest levels since the early 1980s – though still slightly less than its peak in the summer. Medical care, food and shelter (housing, rent) “were the largest of many contributors” to the increase in inflation seen in September.
Why It Matters: Core inflation (when volatile food and energy prices are removed from the reading) rose to 6.6% year-over-year — the highest level in 40 years. In an attempt to slow inflation and cool the economy, the Federal Reserve is likely to continue raising interest rates (borrowing costs).
September Inflation Report Prices Rise Faster Than Expected (The New York Times)
The full report from the Bureau of Labor Statistics: Consumer Price Index Summary
by Jenna Lee,