Inflation remains persistently high at 8.2%--and more interest rate hikes are likely

[Celerity]

https://www.cnbc.com/2022/10/13/inflation-remains-high-at-8-point-2-percent-more-interest-rate-hikes-likely.html

The rate of inflation rose by 0.4% in September, and remains well above its benchmark target of 2%, making the prospect of continued “jumbo” interest rate hikes more likely.

The year-over-year rate of inflation is now 8.2%, down from its June peak of 9.1%, according to the Labor Department’s Consumer Price Index, which measures how much Americans pay for certain goods and services.

That is slightly higher than many forecasts, including a Bloomberg survey of 51 economists that predicted a year-over-year inflation rate of about 8.1%.

The prices for core goods continue to rise steadily, increasing by 0.6%, which is the same rate as the previous month. Core goods is a measure of all items except food and energy prices, which tend to be more volatile.

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[gab13by13]

1. Why are more interest rate hikes likely?

To create a recession? To crater 401k's, to cause unemployment. To trash the economy while Biden is president? To please the central banks?

[Celerity]

2. The Fed will say to lower the rate of inflation

[JohnSJ]

5. Yes, at least for the first part of the body of your message. The whole point of increasing

interest rates is to curb inflation, and hope by doing so will decrease demand and spending, which they hope will cause prices to decrease.

While that should occur with big ticket items such as houses and cars, it will have no impact on energy prices, which have a direct effect on the price of everything else.

[TheBlackAdder]

3. If it's corporate price gouging masked under the premise of inflation, raising rates won't work.

[Celerity]

4. prices here in the EU in multiple nations are rising even faster than the US

[DestinyIsles]

6. Inflation went up everywhere around the world

UK for example is at 10% inflation, Covid and Ukraine War are the main drivers.

[Celerity]

7. yes, we are getting hammered here in Sweden, and the weak krona v strong US dollar is not helping

[fightforfreedom]

8. I am ignoring my 401k account. Been through this shit too many times over the years.

I am just going to ride it out and eventually it will recover. Young people better start paying attention to what the Republicans want to do with social security. They should be reminded what Bush tried to do with social security.

Social security is much more reliable than a 401k account.