U.S. inflation keeps soaring

U.S. inflation keeps soaring
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Islam News – Consumer prices climbed far more quickly than expected in the U.S., grim news for the Federal Reserve as it tries to bring the most rapid price increases in four decades under control.

Overall inflation climbed 8.2 percent in the year through September, more than some economists expected, and prices increased 6.6 percent after stripping out fuel and food, the so-called core index. That is a new high for the core index this year, and the fastest pace of annual increase since 1982.

Fed officials are closely watching the monthly numbers, which give a clearer snapshot of how prices are evolving in real time. They offered more reasons to worry: Overall inflation climbed 0.4 percent in September, much more than last month’s 0.1 percent reading, and the core index climbed 0.6 percent, matching a big increase in the prior month.

Takeaways: The disappointing inflation data is most likely bad news for Democrats ahead of the midterm elections.

What’s next: A sixth round of rate hikes from the Federal Reserve this year looks likely. Central bankers have signaled that they will consider an increase of up to three-quarters of a point at their next meeting in November.

Source: The New York Times

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