Economists predict higher inflation prices will be sticking around. A new report indicated that the consumer price inflation rose 0.4% last month. Experts say the recent surge in energy prices is one of the components that could cause the CPI could stay elevated. In other news, the House approved a $480 billion hike to the debt ceiling on Tuesday, averting a potentially catastrophic U.S. default for at least another two months. President Biden is expected to sign the bill.
CNN Business/Anneken Tappe
Key inflation report: Prices aren’t coming back to earth anytime soon
US inflation remains much higher than anyone would like — consumers, the White House, the Federal Reserve… In September, prices stayed high, returning to a 13-year peak after dipping a bit in August.
Consumer price inflation — one of the key inflation indicators — rose 0.4% in September, adjusted for seasonal swings, faster than in August but slower than in previous months, the Bureau of Labor Statistics reported Wednesday.
Rising prices for food and shelter contributed more than half of this increase, while prices for new cars, household furnishings, and car insurance also climbed. The index that tracks new car prices rose 8.7% over the 12 months ending in September, which marks the biggest jump since 1980.
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Fox Business/Thomas Barrabi
House votes to lift debt ceiling, likely delaying default showdown until December
House lawmakers approved a $480 billion hike to the debt ceiling on Tuesday, averting a potentially catastrophic U.S. default for at least another two months and teeing up another showdown over a long-term solution.
The Democrat-controlled House passed the measure in a 219-206 vote along party lines. The vote brought the House in sync with the Senate, which passed its own bill last week raising the debt limit by $480 billion. President Biden is expected to sign the bill.
The resolution will allow the federal government to cover its debt obligations through Dec. 3. Democratic lawmakers will use the temporary reprieve to identify a long-term solution to raise the debt limit without Republican support.
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Kitco News/Anna Golubova
Gold price sees $20 swings as inflation accelerates slightly in September
The U.S. inflation data accelerated slightly more than expected in September, with the U.S. Consumer Price Index rising 0.4% after August’s advance of 0.3%, the U.S. Labor Department said.
Consensus forecasts were calling for a rise of 0.3%.
Annualized inflation was at 5.4% versus the projected 5.3%. September’s increase matched the largest annual price gain since 2008. This comes after August’s 5.3% advance.
Monthly core inflation, which strips out volatile food and energy costs, came in as expected, up 0.2% in September, following a 0.1% advance in August. Annualized core inflation also met expectations, coming in at 4% after registering the same advance during the previous month.
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