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The US CPI rose 6.2% in October, the biggest increase in 30 years

 


The price hikes for many products consumers buy every day are worse than expected in October, the highest in more than 30 years, the Labor Ministry said on Wednesday.
The Consumer Price Index, a basket of commodities ranging from petroleum and medical devices to food and rental goods, rose 6.2% year-on-year, the highest since December February 1990. That compares to the Dow Jones estimate of 5.9%.

In one month, the CPI rose 0.9% from an estimate of 0.6%.
Excluding food allergies and tariffs, the key CPI rose 0.6% vs. 0.4% expected. Annual inflation rose at a rate of 4.6%, against expectations of 4%, the highest since August 1991.
Oil prices rose 12.3% this month, up from 59.1% a year earlier. Electricity prices rose 4.8% in October and rose 30% in 12 months.

Recycling car prices made a big difference, up 2.5% per month and 26.4% this year. New car prices increased by 1.4% and 9.8% respectively. Food prices also rebounded significantly, up 0.9% and 5.3%, respectively. In food, meat, poultry, fish and eggs increased 1.7% in January and 11.9% year on year.

The increase means that the staff must continue later.
In a statement, the Ministry of Labor said post-real estate profits fell 0.5% from September to October.

House prices, which represent a third of the CPI figures, rose 0.5% in the month and are now up 3.5% from a year ago. This represents a variety of reasons to fear that inflation will be more favorable than what policymakers would expect. . The annual rate is the highest since September 2019.

Seema Shah, Vice President of Global Investors, said: “Inflation got more pronounced before it got better, as new evidence suggests that inflation is due to higher inflation. Housing prices are rising, ”he said.

The data comes as policymakers such as Fed Chairman Jerome Powell and Treasury Secretary Janet Yellen have argued that the current crisis is temporary and could affect the situation affecting the transmission of COVID-19. They recognize that inflation is cheaper than expected, but expect the product to return to normal within the next year.
Since the announcement, the futures markets have declined and income has increased. Rising inflation could force the Fed to tighten policy faster than the signal. The central bank has said it will start cutting monthly lending in the coming weeks, but executives say interest rates will continue.

According to CME's FedWatch tool, traders set the price Wednesday morning with about a 44% chance of two rate hikes and a third in 2022. Louis Fed Chairman James Bullard said overnight on CNBC that there would be two, but the Fed said a solo trip was not possible.
Other market-based markets are also more impacted, with a five-year crash rate hitting a record high of 3% relative to the financial ratio to inflation of price-indexed bonds. A report released on Wednesday showed the first jobless claim was 267,000, with the outbreak weaker after falling 4,000 last week. This figure is lower than the Dow Jones estimate of 269,000.

A week later, demand continued to increase from 59,000 to 2.16 million, and the total number of beneficiaries in each program increased from 107,095 to 2.56 million. The latest was 21.7 million a year ago.

Correction: The annual inflation rate has increased to 4.6%, compared to the expected 4% and more since August 1991. The previous entries for month and year are incorrect.