Consumer prices surge by most in 31 years

Prices rose 6.2% year over year in October

Per Fox Business:

U.S. consumer prices accelerated at the fastest annual pace in more than 30 years as supply chain bottlenecks and materials shortages persisted and gasoline prices surged.

The consumer price index climbed 6.2% year over year in October, the Labor Department said. The increase marked the largest annual gain since November 1990. Prices rose 0.9% month over month. 

Analysts surveyed by Refinitiv were expecting prices to rise 0.6% in October and 5.8% annually.

"Inflation is broadening out," said Greg McBride, chief financial analyst at Bankrate. "In addition to food, energy, and shelter continuing to post outsized monthly increases, new and used car prices are once again shifting into overdrive."

Energy prices jumped 4.8% last month, and were up 30% over the past year. The October increase was largely the result of a 6.1% rise in the cost of gasoline. 

Food prices, meanwhile, edged up 0.9% last month as the food at home category saw a 1% increase. All food prices are up 5.3% year over year. 

Core prices, which exclude food and energy, increased 0.6% month over month and 4.6% over the past 12 months. Economists were expecting respective increases of 0.4% and 4.3%.

Also contributing to the rise were new and used vehicle prices, which in October rose 1.4% and 2.5%, respectively. Prices for new vehicles were 9.8% above year-ago levels while used vehicle prices were up 26.4% from October 2020.

The cost of shelter ticked up 0.5% last month and was 3.5% above year-ago levels. 

"We’re seeing early signs of an inflationary surge that’s likely to persist, with companies responding to rising input costs with cost increases of their own, which in turn causes higher input costs for others," said Brad Armstrong, partner at Lovell Minnick Partners. "It’s a cycle that repeats itself."  

Wednesday's hotter-than-expected report surely caught the attention of the Federal Reserve, which earlier this month announced plans to taper its $120 billion per month in asset purchases while taking notice of "elevated" inflation. The central bank still expects inflation to be "transitory."

The Fed will later this month begin scaling back its purchases of Treasurys and mortgage-backed securities by $15 billion a month, which puts its asset-purchase program on pace to end in June. Markets are currently pricing in the first rate hike to occur in July 2022.  

12 hours ago

‘Actions Speak Louder Than Words’: Kansas Governor Lied about Her Stance on Men in Women’s Sports, New Ad Claims

Governor Laura Kelly (D., Kan.) has “lied to voters” about her position on biological men competing in women’s sports, the Republican Governors Association Kansas 2022 PAC told viewers in a new TV ad

1 day, 15 hours ago

Biden Approval Rating Sinks Below 40%, Signaling Potential Reversal Of A Political ‘Comeback’: POLL

President Joe Biden’s approval rating sank below 40% in a poll released Sunday, appearing to contradict various reports of the president making a “comeback” among voters.

5 days, 15 hours ago

Maine Democrat Gov. Mills’ Education Program Teaches that ‘MAGA’ Is Covert Racism, White Supremacy

Using the slogan “MAGA” is an example of covert racism and white supremacy, according to an instructional video available through Maine’s Department of Education.

5 days, 16 hours ago

Border Patrol agents nab a dozen people on terror watchlist at southern border in August

Border Patrol stopped a dozen individuals whose names are on the FBI’s Terrorist Screening Database (TSDB) in August, bringing the total for the fiscal year to a number that is triple the previous five fiscal years combined...

5 days, 16 hours ago

The Arizona Miracle

About 25 years ago, I got the urge to write about charter schools. So I traveled to Arizona, where new state policies had made it much easier to launch and finance them.

1 week ago

Crist Campaign Takes Heat for Running Mate’s Criticism of Jerusalem Embassy Move

Florida Democratic gubernatorial candidate Charlie Crist is under scrutiny for his running mate's criticism of the Trump administration's recognition of Jerusalem as Israel's capital city.