By squeezing businesses and inflicting real pain on millions of American households, US wholesale inflation rose – yes, once again more than “experts” expected – in September as prices for necessities daily have remained at their highest for many decades.
Megan Henney for FOX Business:
The Labor Department said Wednesday that its producer price index, which measures wholesale inflation before it reaches consumers, rose 0.4% in September from the previous month. On an annual basis, prices increased by 8.5%.
These figures were both higher than the main figure of 8.3% and the 0.3% monthly gain expected by Refinitiv economists, a worrying sign for the Federal Reserve as it seeks to cool price gains and tame consumer demand. with an aggressive interest rate hike campaign.
Excluding food, energy and commercial services, wholesale inflation rose 0.4% over the month, the fastest gain since May. Over the past 12 months, core prices have risen by 5.6%.
MacDailyNews takes: When some neighborhoods, including the Fed, delude themselves and others that “inflation is transient” and waste at least a year before doing only part of what is needed * (interest rate hikes), the price will be paid. to be delusional and late.
Recovering will be difficult. But, hey, good luck with that soft landing. ? – MacDailyNews, September 13, 2022
In January, Interactive Brokers founder Thomas Peterffy said of the US Federal Reserve: “If they really want to stop inflation, they should raise rates to 4%, 5%, 6%.”
The Fed’s current target interest rate range is between 3.00% and 3.25%. Peterffy may have been too conservative. At this point, rates of more than 6% may be required.
It is best to control inflation, if you know how, while you can. – MacDailyNews, May 11, 2021
*Stopping the misleading crusade against domestic energy production and profligate federal spending and inflation will stop suddenly. It is not difficult. – MacDailyNews, May 11, 2022
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