The Consumer Price Index (CPI) data for September is out and it’s hammering the stock market on Thursday with increasing inflation.
The newest data shows that the all-items index increased 8.2% over the prior 12 months. On a sequential scale, that’s a 0.4% increase compared to August, which was only up 0.1% from July.
Diving into the details of that report, consumers saw the CPI minus food and energy increase by 6.6% over the last year. To go along with that, food prices jumped 11.2% over the course of the last year. In that same period of time, consumers have dealt with energy prices increasing by 19.8%.
What Caused the CPI Increase?
According to the September report, several key areas saw increases that sent the CPI higher. That includes shelter, food, and medical care indexes contributing the most to the jump in inflation data.
On the flip side of that, the energy index saw a 2.1% drop compared to August. That’s thanks to falling gas prices. However, increases in the natural gas and electricity indexes partially offset that drop.
Michelle Meyer, the chief U.S. economist at the Mastercard Economics Institute, told CNBC the following about how the inflation data is affecting the Federal Reserve:
Inflation is able to run this hot in part because consumers have had very strong purchasing power. Consumers are still spending through these inflation increases, and the challenge therefore is larger for the Fed to effectively be able to rebalance the economy.
The Fed has been increasing interest rates to try and battle inflation but it hasn’t worked yet. That means harsher rate hikes might be on the way.
Keep reading for a look at how the CPI is affecting the stock market today!
Several sectors are being affected by the September CPI data on Thursday. A few examples worth noting include chip stocks, tech stocks, as well as crypto. You can catch up on all of this news at the following links!
More Stock Market News for Thursday
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
