By Indu Tyagi Ketan, 14 October, 2022
Just a few weeks ago, the world was on the brink of a global economic crisis, baffled by worries about inflation and unemployment, and now suddenly, the skies are clear.
The US Bureau of Labor Statistics recently released the Consumer Price Index (CPI) figures. According to the Bureau of Labor Statistics, food, housing, auto insurance, home furnishings, and healthcare prices rose during the month. . September saw a decrease in inflation to 8.2%, the lowest level since February. Still, a 5% decrease in the cost of gasoline was sufficient to bring the overall inflation rate down marginally.
The inflation rate was lower than economists had anticipated, at 8.1%. That comes after it reached 9% in June, which was the highest in over 40 years.
Although the reported figure's reduction may be welcome news for policymakers aiming to control inflation through rate increases, a closer examination reveals that underlying prices are still rising at a concerning rate.
But other than gasoline prices dropping by 4.9%, there wasn't much proof that prices were going down last month, which is why some of the substantial increases couldn't be offset entirely. Experts have noted that housing is a major cause of inflation, up by eight-tenths, a tenth higher than it has been over the previous three months. It was hoped that it would reduce the owner's equivalent rent by 1%. Clothing sales decreased by 3/10ths and used automobile sales decreased by 1.1%. The economists had anticipated a significant decline, yet the number of new cars arriving has increased by 7/10ths. Gas prices were surprised to drop, but electricity is up by 4/10ths, signaling a forthcoming rise in energy costs.
The recently announced figures will largely determine the US Fed's decisions to continue with aggressive monetary tightening at its upcoming meeting at the beginning of November. According to experts, the central bank will increase interest rates by another 75 basis points at its meeting.
What little uncertainty there was on Wall Street regarding a probable Fed "shift" was dispelled by the September inflation report. Due to growing concerns about a worldwide recession, many investors have urged the central bank to ease up on its current policy course.
Indu Tyagi Ketan
Chief Strategy Officer
Central banks are expecting to settle for the inflation that’s higher than the 2 percent targets as per ta majority of fixed-income investors in the Bank of America Corp. survey.
According to the reports, two-thirds of the respondents in a survey…
Nvidia is playing a leading role in the global chip industry, and it is expected to be at the forefront of the artificial intelligence gold rush after its latest earnings release. Nvidia's market capitalization jumped by almost USD 200 billion on…
Credit Suisse became worse from bad in late March of 2022, this resulted in the state-brokered takeover by the rival UBS. The 167-year-old bank’s customers rushed for the exits along with their money.
According to the bank’s latest report on the…
Microsoft has joined other big tech companies in turning to layoffs to overcome the more challenging times. It announced cutting over 10,000 jobs and posted on fiscal second quarter earnings exceeding the Wall Street estimate.
According to the…
Green Tech is the new normal as adopted by the world to save environment. The five most prepared countries to use and adapt to the frontier technologies which will help the green tech transition are Sweden, United States, Singapore, the Netherlands,…