US inflation accelerated again in September, rising 8.2%

The month of September saw inflation accelerate rather than the decline economists hoped to see. Housing costs and the price of other goods increased over the month, likely cementing the possibility of further interest rate hikes from the Federal Reserve in the coming months.

“We still have no evidence that inflation is decelerating,” said Matthew Luzzetti, an economist at Deutsche Bank. “Let alone the clear and convincing evidence that the Fed is looking for.”

Consumer pricing, excluding volatile food and energy costs, saw a 6.6% increase from the same month a year ago, marking the fastest increase pace in forty years. On a month-to-month basis, prices rose 0.6% for the second consecutive time.

Overall prices rose 8.2% in September compared to the same month last year. While the number is a slight decrease from August, the pace of increase is most concerning to analysts. Prices from August to September increased 0.4% faster than between July and August.

There were declines in the prices of numerous physical goods, like used cars, clothing, furniture, and appliances. But increases in services costs like health care, auto repair, and housing offset those decreases. Housing costs spiked 0.8% in September, marking the largest increase in 32 years and leading to higher mortgage rates of nearly 7%. Health insurance also increased by 2.1% from August to September.

President Joe Biden remarked on the issue from Los Angeles, acknowledging the pressure inflation is putting on many people and suggesting that the September figures showed “some progress.”

“Americans are squeezed by the cost of living,” the President said. “It’s been true for years, and folks don’t need to read a report to tell them they’re being squeezed.”

“Fighting this battle every day is a key reason why I ran for president,” he said.

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