(NEXSTAR) – US inflation accelerates in September, latest Labor Department data showIt keeps housing costs and daily needs high, ensuring that the Federal Reserve will probably increase interest rates aggressively.
Consumer prices rose 6.6% year-on-year in September, excluding volatile food and energy costs, the fastest pace in 40 years, but some spending was cheaper than at the same time last year. It is
In grocery stores, where many items are priced, 10% to 20% increase Year-over-year, uncooked beef steaks are down nearly 5%. Prices for uncooked roast beef are down about 2.8%. The cost of fresh vegetables is up about 9% overall, while tomatoes are down 1% from last year.
Some entertainment and recreational spending has fallen in price as well.
Smartphone prices have fallen the most since last year, down 21%. TVs are right behind, down nearly 18%. Prices for personal computers and smart home assistants are down about 3.6%.
Outside the home, admissions to sporting events are down 9.5%.
Based on monthly data, costs for many items outlined by the Department of Labor are also starting to decline. This includes breakfast cereals, ground beef, eggs, milk, coffee, butter, gasoline, furniture and used cars.A key factor is that supply chain disruptions have eased, allowing many large retailers to Discounts at Walmart, Target, etc. Some items to clear excess stockpiles.
Still, lower prices on some spending won’t ease upward pressure on inflation.
“There is no evidence yet that inflation is slowing,” said Matthew Rusetti, an economist at Deutsche Bank.
Inflation is driving up household food, rent, and utility bills, creating hardships for many and deepening economic pessimism despite strong job growth and historically low unemployment. increase.
September’s inflation rate essentially guarantees that the Fed will raise the main short-term rate by three-quarters of a percentage point at its next meeting in early November. The Fed has already raised its main short-term interest rate by 3 percentage points since March, the fastest pace since the early 1980s. These hikes are aimed at keeping inflation in check by raising the cost of borrowing mortgages, car loans and business loans and slowing the economy.
At their last meeting in late September, Fed officials expected the key rate to rise to about 4.5% by early next year. Some economists now predict the Fed will need to raise interest rates further to break what appears to be entrenched inflation. The risk is that such rising borrowing costs will push the economy into recession.
The cost of many commodities is likely to remain high until consumer demand slows further, forcing more businesses to compete on price, economists said.
“There’s a saying in economics that prices go up like a rocket and fall like a feather,” says Eric Swanson, a former Fed economist and now a professor at the University of California, Irvine. “You kind of see it a little bit.”
The Associated Press contributed to this report.
https://www.mystateline.com/news/despite-inflation-these-things-have-gotten-cheaper/ In spite of inflation, these things became cheaper