This could be the final nail in the Democrats' coffin.
On Thursday, inflation rates were worse than expected in September, clocking in at 8.2% year over year, according to the consumer price index.
The Bureau of Labor Statistics report revealed that while inflation ticked down by one-tenth of a percentage point, inflation is still higher than anticipated and defying the Federal Reserve's aggressive interest rate hikes.
The news is expected to cost Democrats big time in the House and Senate as voters concerned about the country's economic health head to the voting booth. The Thursday morning report is the last such CPI reading before the midterm elections and the economy has been proven to be a primary issue on voters' minds.
The negative Thursday reading means that the Fed will likely feel as though it needs to keep raising rates so aggressively, thus increasing the odds for a recession, according to The Washington Examiner. (RELATED: President Biden Admits a Recession is Coming and Immediately Tries to Backtrack)
“The month-to-month CPI numbers both with and without food and energy were higher than expected, which again shows the stubbornness of the increase in the price level. This is not a situation which is going to be ironed out by rate hikes or other contractionary policies overnight. Inflation will probably be with us for a while,” said Peter Earle, research fellow at the American Institute for Economic Research.
Consumer prices have been rising fast since last August, especially for staples such as food and gas. In fact, until March's CPI report, inflation had risen every month for eight months. Thursday's CPI report comes as the central bank works to hike interest rates aggressively.
The higher prices are hitting consumers hard. The rising cost of food in particular has been difficult for many households. The price of chicken has risen 17.2% over the last year, while milk prices have increased by more than 15%. Meanwhile, energy prices have risen by nearly 20% and people in many places, especially in cold New England, are facing the prospect of major bills heating their homes this winter.
The Fed's interest rate target has risen by 2.25% in the past four months, the most forceful rate hikes since the Great Inflation of the late 1970s and early 1980s. The target is now 3% to 3.25%, the highest it has been since the financial crisis in 2008.
This story is developing. Stay with American Liberty News for the latest updates.
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Annual inflation via BLS just out:
42.9% airline fares
33.1% utility gas
30.5% eggs
18.2% gasoline
17.2% chicken
15.7% coffee
15.2% milk
14.7% bread
10.1% furniture
9.2% vegetables
8.2% all items
8.2% fruit
8.1% ham
7.6% women apparel
7.2% used cars
6.7% rent
3.7% men apparel
I do not understand how raising interest rates is supposed to fight inflation. From my perspective, the increase in interest rates just looks like another inflated data point, like the increased prices of food or energy.
”… The final nail in the D’s coffin”… We’ll find out about that when the Dominion machines tabulate the final vote…..
That’s always the way it is with the left. That old political saying of ” it’s not how many votes there are, it’s who counts those votes”, was never more true than in the last election.
Not hard enough…they’re still there.
Easy to solve the Democrat’s Problems, just put Trump back in office, after all he is our elected President… The World knows it but just a few Dem’s just can’t get a grip on the fact that we all know… The curtain has been lifted and we all see and know now! Can’t hide it… Amen
The Feds raising interest rates is counter productive. We have monetary inflation, not runaway consumer spending. When the Fed creates dollars out of thin air as they have been doing to fuel the government’s runaway deficit spending, dollars become less valuable in purchasing goods and services. In addition, high interest rates means the federal government has more deficits because of high interest payments on the $30 trillion debt. So the Fed creates more dollars out of thin air and it becomes a vicious cycle.
Consumers are buying fewer goods and services, but inflation isn’t going down, because inflation wasn’t caused by consumer spending in the first place.
For a reason known only to the democrats, they seem to feel like inflation and the bad economy isn’t that important to the voters. They must think that since they don’t have money problems, the rest of us don’t either. We really need to purge all the democrats from our government while we still have a chance to do it. If we don’t they will destroy our republic and replace it with their version of socialism.