Stressed supply chains and 'unusually high demand' pushed consumer prices higher last month
The U.S. consumer-price index, which measures what consumers pay for goods and services, rose 0.4 perent in September, "faster than in August but down markedly from June's 0.9% pace," The Wall Street Journal reports Wednesday, per data from the Labor Department. Meanwhile, inflation accelerated slightly over the same period, "as pandemic-related shortages of labor and materials continued to push up prices."
Inflation rose on an annual basis, as well, as the CPI climbed 5.4 percent in September from a year earlier, per the Journal. Such a jump was "more than expected," notes The New York Times.
"It looks like some of these supply-chain and inventory challenges are going to stick with us for a bit longer—at least through the rest of this year," said Omair Sharif, founder of Inflation Insights LLC. Prices for groceries, gasoline, heating fuels, new vehicles, rent, and furniture rose, while that of used cars, airline fares, and apparel fell, notes the Journal.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
Supply shortages as a result of "clogged shipping routes and labor shortages at ports," coupled with "unusually high demand" for goods, are threatening the Federal Reserve's continued belief such inflation is "transitory" — if the disruptions last long enough, it could "prompt consumers and businesses to expect higher prices" and cause an upward, inflationary spiral, writes the Times.
The Times' Ben Casselman also notes that "base effects" — or, "the impact of the drop in prices earlier in the pandemic" — are not the main driver of September's CPI increase, although they are, of course, still playing some role.
Fed officials said they would step in if inflation proves persistent, but would prefer to wait until the job market has further stabilized, notes the Times, writing that such "potentially conflicting goals could set the stage for a tense 2022."
Create an account with the same email registered to your subscription to unlock access.
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Brigid Kennedy worked at The Week from 2021 to 2023 as a staff writer, junior editor and then story editor, with an interest in U.S. politics, the economy and the music industry.
-
Four key tax changes to prepare for in April
The Explainer With time running out, a last-minute checklist could help you make the most of your allowances
By Marc Shoffman, The Week UK Published
-
Covid four years on: have we got over the pandemic?
Today's Big Question Brits suffering from both lockdown nostalgia and collective trauma that refuses to go away
By Chas Newkey-Burden, The Week UK Published
-
Katespiracy: is the media to blame?
Talking Point Public statement about cancer diagnosis followed weeks of wild speculation and conspiracy theories
By Julia O'Driscoll, The Week UK Published
-
Reddit IPO values social media site at $6.4 billion
Speed Read The company makes its public debut on the New York Stock Exchange
By Peter Weber, The Week US Published
-
Housing costs: the root of US economic malaise?
speed read Many voters are troubled by the housing affordability crisis
By Peter Weber, The Week US Published
-
Feds cap credit card late fees at $8
speed read The Consumer Financial Protection Bureau finalized a rule to save households an estimated $10 billion a year
By Peter Weber, The Week US Published
-
Immigration helped the US economy outpace peers
speed read The U.S. economy grew at an annualized rate of 3.2% last quarter
By Peter Weber, The Week US Published
-
4-day workweek gets boost from UK study
Speed Read Following a six-month trial, the majority of participating British companies are still using the truncated schedule
By Peter Weber, The Week US Published
-
US sues to block Kroger-Albertsons merger
Speed Read The Federal Trade Commission sued to block the $24.6 billion merger between the grocery giants
By Peter Weber, The Week US Published
-
Nvidia sees historic stock rise on AI chips success
Speed Read U.S. chipmaker Nvidia achieved the biggest one-day increase in value of any company in history
By Peter Weber, The Week US Published
-
New York may seize Trump's assets for $450M penalty
Speed Read The former president likely owes $600 million from two civil judgments in New York
By Peter Weber, The Week US Published