Consumer prices rose slightly more than expected in September, with increaseswith food and energy prices offsetting declines in used cars, the Labor Department reported on Wednesday.
The consumer price index for all items rose 0.4% for the month. , compared to the Dow Jones estimate of 0.3%. Year over year, prices rose 5.4% from the 5.3% estimate and the highest since January 1991.
However, at Excluding volatile food and energy prices, the CPI rose 0.2% on the month and 4% year on year, against respective estimates of 0.3% and 4%. %.
The "futures contracts on Dow were slightly positive after the announcement but fell sharply throughout the morning as government bond yields were mostly lower as investors turned to income refuges.
Gasoline prices aret increased yet. 1.2% for the month, bringing the annual increase to 42.1%. Fuel oil jumped 3.9%, up 42.6% year-on-year.
Food prices also posted noticeable gains for the month, as in-home food increased by 1.2%. Meat prices rose only 3.3% in September and 12.6% year-on-year.
"Food and energy are more variables, but that 's where the problem lies, "said Bob Doll, chief investment officer. manager at Crossmark Global Investments. "I hope we start to solve our supply shortage problem. But when the dust settles, inflation will not return to zero to 2 [percent] where it was in the last decade. . "
Used car prices, which have been at the center of much of the inflationary pressure in recent months, fell 0.7% for the month, bringing down the Hausse over 12 months at 24.4%. However, the continued rise in prices, even with falling vehicle costs, could lend credence to the idea that inflation is more persistent than policymakers realize.
Tariffs of airlines fell 6.4% for the month after falling 9.1% in July.
House prices, which account for about a third of the CPI, have increased 0.4% for the month and 3.2% for the 12-month period. Homeowners 'rent equivalent, or how much a property owner would have to pay to rent it, also rose 0.4%, its biggest monthly gain since June 2006.
"It could be just an overshoot after a few relatively modest increases, but we can't rule out the idea that the fundamentals - rapid gains in house prices, more aggressive prices for homeowners, low inventories and faster wage growth - grow the tendencye on the rise, "wrote Ian Shepherdson, chief economist at Pantheon Macroeconomics.
Clothing prices also fell 1.1% in September while transport services fell by 0, 5%. Both sectors have grown steadily and consistently posted annual gains of 3.4% and 4.4%, respectively.
Federal Reserve officials called the current trend inflation of "transient " and attributed much of it to the supply chain and demand. problems they expect will go away in the coming months.
However, this view has been pushed back considerably in recent times.
"This is another data point to say, 'Fed, your attempt to convince us that inflation is transient just is not credible, ' " said Doll. "If you know someone who doesn't have to live somewhere, don't eat food anddoes not use energy, so inflation may not be a particular problem. But come on. "
Tuesday, the "International Monetary Fund has warned that the Fed and its global peers should prepare contingency plans should inflation prove to be persistent. That would mean raising interest rates earlier than expected to control price gains.
Later in the day, St. Louis Fed Chairman James Bullard told CNBC that he "thinks the Fed should be more aggressive by withdrawing its economic support, and in particular its monthly bond purchases, if inflation proves to be problematic and requires rate hikes next year. Also on Tuesday, the Fed chairman of Atlanta's Raphael Bostic said the factors that drove the 'Rising inflation "will not be brief ". , "said Seema Shah, chief investment strategist at Principal Global Investors. " Inflation has already exceeded its target and, on the contrary, the higher than expected September CPI only reinforces the need to start decreasing. The November decrease, here we are. "
JPMorgan " Chase CEO Jamie Dimon on Monday took the transitional side of the argument, saying that current conditions will clear up and inflation will not be a factor in 2022.
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