Core Inflation Reaches New Record High; Real Wages Down 3.0% Over the Year | Eastern North Carolina Now | The Consumer Price Index (CPI) rose 0.4% in September, greater than the increases in July and August and higher than projections, according to the latest release from the Bureau of Labor Statistics. On an annual basis, prices have increased 8.2%.

Coronavirus Disease 2019 (COVID-19)
    Publisher's Note: This post appears here courtesy of the John Locke Foundation. The author of this post is Paige Terryberry.

    The Consumer Price Index (CPI) rose 0.4% in September, greater than the increases in July and August and higher than projections, according to the latest release from the Bureau of Labor Statistics. On an annual basis, prices have increased 8.2%.

    This new data underscores the insufficiency thus far of the Federal Reserve's actions, which has raised interest rates 0.75 percentage points at the last three meetings in attempts to tamp down on prices.

    So-called core inflation, which excludes food and energy, rose 0.6% in August, bringing the annual rise up to 6.6%. This is above market forecasts and is the highest annual rate since 1982.

    The gasoline index declined 4.9% over the month, smaller than the 10.6% decrease in August. Though this did drive a decrease of 2.1% in the broader energy index over the month, the gasoline index is still up 18.2% over the year.

    As I wrote last month, the recent slight decline in prices at the pump is likely at least partially attributable to the Biden Administration's decision to drain 180 million barrels from the Strategic Petroleum Reserve (SPR), which is now at the lowest level since 1985, according to Reuters. Overall inflation is likely to jump higher for October because gas prices are climbing again, up an average of 20 cents per gallon since the last week of September.

    Meanwhile, utilities, shelter, and medical care services are up 2.9%, 0.7%, and 1.0% over the month, respectively. Utility prices are up a whopping 33.1% over the past year.

    Transportation services, including mass transit and airfare, rose 1.9% over the month and 14.6% over the year.

    The food index rose 0.8% in September and 11.2% over the year. Groceries are up 13.0% over the year, a devastating setback for low-income families in particular, who spend a greater share of their income on food.

    CPI's annual rate has been running at 5.0% or more since May 2021. As the Federal Reserve continues to make changes this late in the game, workers' budgets are hurting. Real average hourly earnings decreased 0.1% in September after increases in July and August. Over the year, real average hourly earnings are down 3.0%, a level unacceptable to working families, or anyone saving for the future.

    In North Carolina, a recent Civitas poll found that more than half of the population finds it difficult to afford food (52.9%) and gasoline (56.5%). Nearly 85% believe the nation is heading toward recession.

    Government deficit spending and money printing caused today's inflation. It continues to impact the average American's wallet every day, preventing them from saving for the future and causing some to sacrifice their dreams. Washington's recklessness has consequences. Inflation is an implicit tax on workers, harming the poor most. If we continue further into recession, low-income families will disproportionately endure the effects.
Go Back

Leave a Guest Comment

Your Name or Alias
Your Email Address ( your email address will not be published)
Enter Your Comment ( no code or urls allowed, text only please )

Most Corporate Welfare Deals Fail to Deliver as Promised Economic Truths, A Business Perspective, John Locke Foundation Guest Editorial, Editorials, Business, Op-Ed & Politics Biden Begged Saudis to Pump Oil to Sway Midterm Elections


Latest Op-Ed & Politics

Rookie heavenly angel Raphael unleashed total panic after forgetting to shout "fear not" upon showing himself to a group of Israelites.
Twitter CEO Elon Musk released information through journalist Matt Taibbi Friday afternoon showing that Twitter was working in conjunction with then-Democrat presidential candidate Joe Biden’s team, removing tweets that team Biden wanted deleted.
As a youth growing up in a United States of America that understood the pain of sacrifice, the remembrance of Pearl Harbor was an annual event.
How a coastal North Carolina city became the site of America’s only coup d’etat
Democrats have voted to put South Carolina first in the Democratic primary schedule and move Georgia and Michigan up to be included in the early voting states, according to reporting from the Associated Press.
A coalition of charter-school advocacy organizations has filed a lawsuit in federal court seeking to block new restrictions on charter schools imposed by the Biden administration
Former Secretary of State and presidential candidate Hillary Clinton criticized recent pro-life wins, comparing actions that protect unborn life to those in countries around the world where women’s rights have historically been severely restricted.


Former President Donald Trump is asking a federal judge to force the Department of Justice (DOJ) to turn over an unredacted copy of the FBI affidavit used to justify a raid on Trump’s Florida residence.
After the men's national team was dealt a crushing 1-3 loss by the Netherlands, the United States expressed deep relief to no longer have to go on pretending to like soccer.
Teenagers’ brains were physically altered and aged at an accelerated rate during the COVID lockdowns, according to a Stanford University study published Thursday.
An interpreter for the Broadway show “The Lion King” is suing over his termination, claiming that he was fired because of his skin color.
Representative Ilhan Omar arrived at the Capitol today proudly decked out head-to-toe in brand new "Yeezy" gear.
A California law suggests that not-for-credit courses may be on their last legs.
While methamphetamine has been a problem in the United States for a long time, there is a rising concern about fentanyl use and fatal overdoses. However, the two drugs combined are adding another layer to the crisis.
Twitter CEO Elon Musk said Friday afternoon that he will release more information about how the platform censored the New York Post’s bombshell report about Hunter Biden’s laptop just weeks before the 2020 presidential election.


Back to Top