Lates News

The U.S. September CPI report showed that CPI rose 3.7% year-over-year in September, while core CPI rose 2.6% year-over-year, remaining far from the Federal Reserve's 2% inflation target. An important reason inflation has remained above the Fed's target is the strong spending performance of American consumers. Supported by low unemployment and rising stock prices, U.S. households have continued to spend despite steadily rising prices. This has made it easier for businesses to pass on higher costs to consumers. However, Richard Moody, chief economist at Regions Financial, said that supply-side issues such as the closure of the Strait of Hormuz, tariffs, and labor shortages in some industries are the more major factors driving inflation. He said: "At the end of the day, this is a supply-side problem."