The Big Money Show recently talked about comments from JPMorgan Chase CEO Jamie Dimon, who expressed concerns regarding the U.S. economy. The discussion covered various economic risks, the challenges posed by high interest rates, and ongoing inflation issues.
Details on the September CPI inflation report will be added as they become available.
Inflation increased in September, driven largely by rising energy costs.
According to the Bureau of Labor Statistics (BLS), the consumer price index (CPI), a key indicator of everyday expenses like gas, groceries, and rent, went up by 0.6% from the previous month and is up 3.7% year-over-year.
Assessing expectations
The monthly increase matched predictions made by economists surveyed by LSEG, but the annual rise was slightly above the anticipated 3.6%. This uptick in monthly data follows a 0.4% increase in August, while the annual rate increased from 3.4% the previous month.
When looking at core prices—those that exclude more volatile elements like gas and groceries—the monthly rise was 0.3%, marking a 2.6% increase since last year. These numbers exceeded economists’ expectations of 0.2% for the month and 2.5% year-over-year.
Interestingly, the monthly rate eased down slightly from August’s 0.3%, while the yearly figure moved up from 2.4% in the prior report.
US ECONOMY GREW AT A FASTER PACE THAN EXPECTED IN SECOND QUARTER
Cost of living details
Many U.S. households have faced significant financial strain recently due to high inflation, particularly when it comes to costs for basic essentials such as food and housing. The pressure from rising prices hits lower-income Americans especially hard, as they allocate a larger portion of their limited incomes toward these necessities, leaving them with less capacity to save.
In September, energy prices shot up 5.2% compared to the previous month and are 20.4% higher than last year, building on a 2.1% rise in August.
Gas prices surged 9.1% month-over-month in September and are now 34.2% above last year’s levels. According to BLS, the increase in gasoline prices was responsible for over half of the overall CPI hike. Electricity costs saw a smaller increase of 0.2% month-over-month and have risen 4.4% in the past year.
Food prices remained steady in September but have increased by 2.5% compared to a year ago. The index for food purchased at home dipped 0.1% for the month and is up 1.8% since last year, while dining out saw a slight increase of 0.2% and is now 3.5% more than last year.
The index for meats, poultry, and fish fell by 0.4% from the previous month and is up 2.2% year-over-year. Beef and veal prices dropped 1% in September but remain 3.5% higher than last year. Meanwhile, egg prices fell 1.3% last month and are down 20.6% compared to a year ago, as supply has stabilized following an avian flu outbreak.
On the other hand, the fruits and vegetables index saw a 0.5% increase in September, marking a 3.7% rise from the previous year. Coffee prices went up by 0.9% last month, bringing them 7.1% higher than last year.
