PHOTO BY WIFESUN – STOCK.ADOBE.COMHigh housing and gasoline costs continue to strain family budgets as prices rose 3.7% in September compared with the previous year.
In a statement, the Bureau of Labor Statistics said prices climbed 0.4% over August, which was a minor improvement from the previous month-over-month figure but wasn’t enough to give policymakers confidence that the fight against inflation is on the right track.
Economists said the report isn’t indicative of progress, but it’s not a call to panic, either. Inflation remains stubborn, and policymakers can only do so much to address costs for gas, groceries and rent.
At Thursday’s open, the major markets basically held steady, and the Fed is saying it will persevere in trying to reduce inflation. Housing costs were the largest driver of inflation in September, and they have been high for more than a year. There are signs that rentals are dropping from pandemic highs, but experts still predict that will take time.
Gas costs were up again in September, with the index rising 2.1% compared with 10.6% in August. (Before seasonal adjustment, gasoline prices rose 0.6% in September.) Costs for food and energy stayed the same from August to September. The same goes for used vehicles, which fell 2.5% in September after dropping 1.2% the previous month.
