Inflation Showing No Signs of Being Transitory Yet With US CPI Persistent Into September

Central Bankers keep trying to reassure us that soaring inflation is transitory. September US CPI shows us it remains persistently high. Annual CPI was up 5.4% up from 5.3% in August with core CPI steady at a dizzy 4.0%.

Central Bankers keep trying to reassure us that soaring inflation is transitory. September US CPI shows us it remains persistently high. Annual CPI was up 5.4% up from 5.3% in August with core CPI steady at a dizzy 4.0%.

Inflation

 

US CPI September 2021

CPI in September was up 0.4% month-over-month (consensus +0.3%) following a 0.3% increase in August

 United States Inflation Rate

CPI in September year-over-year figures was up 5.4%, versus 5.3% in August

United States Inflation Rate MoM

Highlights

  • Indexes for food (+0.9%) and shelter (+0.4%) accounted for more than half of the all the items increase.
  • The index for food at home jumped 1.2% after increasing 0.4% in August.
  • The energy index increased 1.3% after increasing 2.0% in August.
  • The gasoline index was up 1.2% versus a 2.8% jump in August.
  • The new vehicles index increased 1.3%
  • Used cars and truck index fell 0.7%.
  • The index for owner’s equivalent rent increased 0.4%.

Food

United States Food Inflation

Housing

United States CPI Housing

Transportation

United States CPI Transportation

US Core CPI September 2021

United States Core Consumer Prices

  • September core CPI, which excludes food and energy, was up 0.2% (consensus +0.3%) following a 0.1% increase in August.
  • Year-over-year core CPI held steady at a lofty 4.0%.

US core consumer prices exclude volatile items such as food and energy, rose 0.2 percent in September 2021, after increasing 0.1 percent in August. Along with the index for shelter, the indexes for new vehicles, household furnishings and operations, and motor vehicle insurance also rose in September. The indexes for airline fares, apparel, and used cars and trucks all declined over the month.

The effects of the coronavirus pandemic are weighing on prices since in last year many businesses closed and lockdowns were imposed, denting economic activity.  A jump in commodities and material costs, coupled with supply constraints, are pushing producer prices up and some companies are passing those costs to clients

US Real Earnings September 2021

  • Real average hourly earnings for all employees increased 0.2 percent from August to September, seasonally adjusted, the U.S. Bureau of Labor Statistics reported today.
  • This result stems from an increase of 0.6 percent in average hourly earnings combined with an increase of 0.4 percent in the Consumer Price Index for All Urban Consumers (CPI-U).
  • Real average weekly earnings increased 0.8 percent over the month due to the change in real average hourly earnings combined with an increase of 0.6 percent in the average workweek.
  • Real average hourly earnings decreased 0.8 percent, seasonally adjusted, from September 2020 to September 2021. The change in real average hourly earnings combined with no change in the average workweek resulted in a 0.8-percent decrease in real average weekly earnings over this period.

US Real Earnings September 2021

“I’m making more money…But I don’t see it because I’m paying more money for stuff now.” Low-wage workers are getting sharp raises. Inflation is eating them up. via Greg Ip WSJ

 Source: BLS

From the Traders Community News Desk

Leave a Reply

Your email address will not be published.