The latest inflation report was released yesterday

The Consumer Price Index (CPI), America’s most widely-used measure of inflation, rose 8.2% in September from the same month a year ago, the Labor Department reported yesterday. That’s down slightly from 8.3% in August and 9.1% in June, which was the highest rate in 40 years.

🔢 By the numbers… On a month-to-month basis, the CPI rose 0.4% in September (vs. 0.1% in August). The core index – which excludes often volatile food and energy prices – was even higher for the month, rising 0.6%. On a yearly basis, core inflation rose 6.6%, the biggest annual gain since 1982.

• The highest monthly increases were seen in transportation (+1.9%), medical care (+1.0%), food (+0.9%), and shelter (+0.8%), the last of which is weighted to make up about one-third of the entire CPI.
• These increases more than offset monthly declines in prices for energy (-2.1%), used cars and trucks (-1.1%), and apparel (-0.1%).

📉📈 The market reacts: All three major US indexes fell by 1.5%–3% when trading officially began this morning, exactly one hour after the CPI was released.

• But then, markets began trending back up, maintaining that trajectory for the rest of the day – to the surprise of many analysts. (Dow: +2.8% | S&P: +2.6% | Nasdaq: +2.2%)

👀 Looking ahead… The Federal Reserve’s policy-making committee is expected to raise interest rates by at least 0.75% for the fourth straight time when it meets early next month.

📊 Flash poll: In your opinion, what’s the most important problem facing America today?

Inflation

Violent crime

Climate change

Health care affordability

Inequality

School quality/education

Other