Consumer Prices Continue To Rise As Fed Combats Inflation

woman in grocery story looking at produce
Tremain Prioleau II
October 27, 2023

The Bureau of Labor Statistics has released its September inflation report showing consumer prices rose  3.7 percent in September compared to this time last year. This is  higher than economists originally expected.

Economists originally predicted a 3.6 percent rise in consumer pricing. Americans are feeling these increases in food and energy prices with gasoline up 2.1 percent from August and September.

Policymakers in the Federal Reserve have been consistently raising interest rates in their efforts to slow economic growth and tame growing inflation. Interest rates have risen up to 5.5 percent under the Fed and a final rate move is currently being debated.

Wages have not stayed at pace with consumer price increases. The Federal reserve has also been attempting to tame wage increases to combat inflation, making subsiding wages great for the economy but bad for workers.

Despite a growing job market and economy, many Americans still feel negatively about the current economy. The September to October inflation report should help economists measure how the economy will affect Americans going into the holiday season.