Inflation exploded with an annual rate of 5.4% in September, marking the highest rate in the past 13 years according to the data released Wednesday on the U.S. Bureau of Labor Statistics CPI, which is the U.S. measure of inflation, for all urban consumers spiked due to an increase in energy prices and marked the largest annual increase since July 2008, as of July 2017. On a monthly basis, the CPI rose by 0.4%, up from the weekly increase of 0.3% in August.
The energy prices saw a move in September of 1.3% and a 24.8% increase from last year, the report showed. Prices for other items also increased, such as the indexes for food and shelter, which rose 0.9% and 1.2% respectively. Food index rose on an annual basis but just 4.6% went up. Also the fuel components rose by 1.2% in September and 42.1% in the past year.
Is growth possible as economy and higher price increase increases in interest rates? Consumers can take advantage of the low rates on student loans by refinancing their credit card. STUDY SAYS:
Amid September s boom, at least one federal official is suggesting the Fed take action. St. Louis Federal Reserve President James Bullard now says the central bank should aggressively look to end its bond-buying program in case rate hikes are needed sooner than expected due to rising inflation.
I d support starting the taper in November Bullard said in an I ve been advocating trying to get finished with the taper process by the end of the first quarter of next year because I want to be in a position to react to potential upside risks to inflation next year as we try to move out from this pandemic. Currently, the Fed is holding the Federal funds rate at 0% as it watches economic activity such as core inflation, wages and other indicators. However, it is becoming more and more hesitant to initiate rate hikes as soon as the next year. Visit Credible for multiple lenders at once and choose the one that is the best fit for you.
Despite the higher inflation numbers and greater talk about rate hikes, one expert doubts it will be enough to change the Fed's current monetary policy plans.
Inflation remained as expected in September due to continued supply disruptions and labor shortages, said Dawit Kebede, the senior economist at the Credit Union National Association CUNA. The imbalance between demand and supply that have driven price increases hasn't changed after a slight indication of slowing in August.
The small monthly change for September is not surprising considering the impact of Delta in recent months and may not bring a change in the calculus of the Federal Reserve's monetary policy response, Kebede said.
While rate hikes in 2022 are still debated, most members of the Federal Open Markets Committee FOMC, which controls monetary policy in the U.S., agree that rate hikes will be warranted by 2023 And interest rates are already beginning to creep up.
The latest report from Freddie Mac showed the average interest rate for a 30 year fixed mortgage - rose for the week ending Oct. 14 to 3.05%, making it the highest point since April. And many The 30 year fixed-rate mortgage rose since April to its highest level, Freddie Mac Chief Economist Sam Khater said. As inflationary pressure builds due to tightening monetary policy and pandemic inflation, we expect rates to continue their moderate upswing. If you want to take advantage of lower interest rates before they increase, consider taking out a mortgage refinance to lower your monthly payment. HOUSING EXPERT: Has anyone ever asked any finance-related questions, but don't know where to ask them? Email Credible Money Expert @ Money Expert Credible.com and your question might be answered by Credible in our Money Expert column.