Fed Still Grappling with Persistent Inflation

The Federal Reserve continues to battle persistent inflation, as prices rose 3.7% in September over the year before.

The September report from the Bureau of Labor Statistics showed the same annual level of inflation as in August with high housing and gas costs sapping household budgets. With households continuing to feel the shock of prices rising faster than normal, the Social Security Administration announced this week that seniors will receive a 3.2 percent increase in benefit checks starting next year.

Inflation looms large in the 2024 elections, a fact not lost on either party. President Biden said the BLS report shows relatively stable inflation, and pointed to the consumer price index, which increased 0.4% in September and 3.7% compared to a year ago.

“This morning’s report shows core inflation fell to its lowest level in two years,” Biden said today. “Overall inflation is down by 60% from its peak at a time when unemployment has remained below 4% for 20 months in a row and the share of working-age Americans in the workforce is the highest in 20 years.”