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As released yesterday, inflation rose in September by 0.4% from August and is up 8.2% on an annual basis.

Why it matters: We are far from the Fed’s 2% target rate of inflation. The persistence of core inflation will be troubling to the central bank. 

By the numbers: Price increases of necessities are putting enormous pressure on family budgets:

•    Food prices were up 0.8% from August to September and 11.2% annually.
•    Gas prices were down 4.9% from August to September but are still up 18.2% from a year ago.
•    Electricity was up 0.4% on the month and 15.5% annually.
•    Housing costs were up 0.7% from August to September and are up 6.6% annually.
•    New car prices rose 0.7% from July and are up 9.4% annually.
•    Used car prices fell 1.1% but are up 7.2% annually. 

Bottom line: The stubborn persistence of monthly inflation makes any call of “peak inflation” premature. Look for the Fed to continue raising interest rates. 

Learn more: U.S. Chamber of Commerce Chief Economist Curtis Dubay released a new slide deck for October with the latest inflation data that can be viewed here

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