U.S.: inflation rises to 3.7% in September due to 9% increase in gasoline
WHAT HAPPENED
U.S. inflation rose from 3.4% to 3.7% annually in September, more than expected. Gasoline increased by 9.1% in the month and accounted for more than half of the total price increase.
WHY IT MATTERS
What cost $100 a year ago now costs $103.70. The impact is felt first in gasoline, transportation, delivery, and logistics. The figure also pressures the Fed to maintain high rates, which makes loans, mortgages, and credit cards more expensive.
AND FOR YOUR PORTFOLIO
For a long-term portfolio, the data increases uncertainty about when rates will decrease. Expensive credit can hinder businesses and families, while rising gasoline prices reduce available money for other expenses.
💬 TELL IT LIKE THIS
“Inflation accelerated again, with gasoline being the main culprit; therefore, the Fed has less room to lower rates.”