Core Inflation Rises More Than Expected Hitting 40-Year High
By Bill Galluccio
October 13, 2022
The rate of inflation continued to rise in September, almost guaranteeing another interest rate hike from the Federal Reserve.
The consumer price index increased 0.4% in September and is up 8.2% over the last year. The core consumer price index, which excludes food and energy, jumped by 0.6% last month and is 6.6% higher than a year ago, the highest level since 1982.
“There are a lot of people out there looking for peak inflation and a slowdown from the Fed on rate hikes, but the data is not in their favor,” Charlie Ripley, a senior investment strategist at Allianz Investment Management, told the New York Times. “This is going to put pressure on the Fed to do more.”
Stocks plummeted on the news, erasing their early-morning gains as the S&P 500 and Dow Jones Industrial Average fell to their lowest level since 2020.
“A lot of times, you can try to find a silver lining in some of the numbers – I can’t. I think that’s why you’re seeing this truly atrocious reaction right now,” said Steve Sosnick, chief strategist at Interactive Brokers, according to CNBC.