Former President Reagan economist Art Laffer talks about inflation, recession concerns, and the impact of the election on the economy.
Inflation rose more than expected in September due to soaring energy and housing costs, highlighting the challenge of containing price pressures in the economy.
The Labor Department said Thursday that the consumer price index, which broadly measures the prices of daily necessities including gasoline, food and rent, rose 0.3% from the previous month in December, more than expected.
Prices rose 3.4% from the same period last year, beating both Refinitiv forecasts and the 3.1% rise recorded in November.
Elsewhere in the report, inflation continued to decline, albeit at a modest pace. Core prices, which exclude the more volatile food and energy measures, rose 0.3% annually, or 3.9%. Both of these numbers are slightly higher than estimates. However, this is the first time since May 2021 that the core inflation rate has fallen below 4%.
The report shows that while inflation has fallen significantly from its peak of 9.1%, it remains well above the Federal Reserve's 2% target.
“Today's inflation report confirms the view that markets were getting a little too excited about the timing of the rate cut,” said Seema Shah, chief global strategist at Principal Asset Management. “These are not bad numbers, but they do show that disinflation is still slow and unlikely to fall to 2% in a straight line.”
caused by high inflation severe financial pressure Most American households are being forced to pay more for everyday necessities like food and rent. The burden falls disproportionately on low-income Americans, whose already maxed-out paychecks are heavily affected by price fluctuations.
A window display at the Vacation Supply Company on Collins Avenue in Miami Beach, Florida. (Photo by Jeffrey Greenberg/Universal Images Group via Getty Images / Getty Images)
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