Record High in Consumer Prices
In September, core consumer prices rose for the 52nd consecutive month, with a month-on-month increase of 0.3%, surpassing the expected 0.2%. This is the highest increase since March. Consequently, the year-on-year Core CPI has risen by 3.3%, which is higher than the anticipated 3.2%.
Headline CPI Exceeds Expectations
The headline CPI also exceeded expectations, with a month-on-month increase of 0.2% compared to the expected 0.1%. The year-on-year CPI rose by 2.4%, which is higher than the expected 2.3%, but the lowest since February 2021.
Consumer Prices Increase Under Biden-Harris Administration
Since the inception of the Biden-Harris administration, headline consumer prices have risen by over 20% (5.1% per annum). This is a stark contrast to the approximately 8% (1.97% per annum) increase during Trump's first term.
Rise in SuperCore CPI
The so-called SuperCore CPI also saw a year-on-year increase, rising to +4.6%.
Real Wages Decline
Since the beginning of the Biden-Harris administration, real wages have been on a downward trend.
Resurgence in Money Supply
There has been a resurgence in the money supply, which could suggest that The Fed's confidence in the decline of CPI may be misplaced.
Replay of the '70s?
Could we be witnessing a repeat of the 1970s?
Powell's Legacy and Inflation
Will this resurgence in inflation be Powell's legacy? Or will it conveniently coincide with Trump's election victory, providing a perfect scapegoat for the blame?
Bottom Line
The surge in consumer prices to a new record high is a significant economic event. The implications of this surge, whether it be a replay of the '70s or a legacy for Powell, are yet to be seen. However, it's clear that the financial landscape is shifting. What are your thoughts on this development? Share this article with your friends and let's get the conversation started. Remember, you can sign up for the Daily Briefing which is available every day at 6pm.
