September CPI: Bad Service

Source: Economics Group of Wells Fargo Bank, N.A.Summary The Consumer Price Index rose 0.4% in September, once again coming in above consensus expectations and demonstrating that inflation continues to bear formidable momentum. Excluding food and energy prices, core CPI inflation rose 0.6% in September and 6.6% over the past year—a fresh cycle high. Lower gasoline prices once again put downward pressure on inflation. Food price inflation moderated slightly compared to the summer months, but it remains very high compared to pre-pandemic rates. Core goods inflation finally provided some relief, with falling prices for apparel, used autos and education & communication goods. However, core services inflation more than offset the relief found in the goods sector. Core services inflation was 0.8% in September, the largest monthly increase since 1982. Higher prices for shelter, medical care services and transportation services led the way for the white-hot services’ inflation reading. READ FULL ARTICLE>>