{"id":2064542,"date":"2023-10-12T09:00:02","date_gmt":"2023-10-12T13:00:02","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/inflation-clocks-in-at-3-7-amid-higher-shelter-and-energy-prices\/"},"modified":"2023-10-12T10:12:03","modified_gmt":"2023-10-12T14:12:03","slug":"inflation-clocks-in-at-3-7-amid-higher-shelter-and-energy-prices","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/inflation-clocks-in-at-3-7-amid-higher-shelter-and-energy-prices\/","title":{"rendered":"Inflation rises to 3.7% due to increased shelter and energy costs."},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"float:left\"><div class=\"counts mashsbcount\">22<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Finflation-clocks-in-at-3-7-amid-higher-shelter-and-energy-prices%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2064542&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><h2>Inflation Holds Steady at 3.7% in September, Providing Relief for \u2064Biden and the Fed<\/h2>\n<p>The latest data from the Bureau of Labor Statistics reveals that inflation remained \u2064at 3.7% for the year ending in September, offering a glimmer of hope\u200c for President Joe Biden and the Federal Reserve. This news comes as Biden strives to alleviate concerns about rising prices and the Fed continues its efforts to combat inflation.<\/p>\n<p>On a month-to-month basis, \u2064inflation actually decreased slightly more than \u2064expected, falling to 0.4%.<\/p>\n<h3>Positive Signs for the Fed as Core Inflation \u200bDeclines<\/h3>\n<p>When excluding volatile food and energy prices, &#8220;core inflation&#8221; dropped to 4.1% for the\u2063 year ending in September. This downward trend in core inflation throughout the year is a positive indicator for the Federal Reserve.<\/p>\n<h3>Housing and Energy Costs Drive Inflation<\/h3>\n<p>The surge in housing prices, particularly shelter costs, accounted for over half \u2062of the overall increase in inflation. Rising\u2063 energy prices, including\u200d a 3% increase in the gasoline index and a 2.6% rise in electricity\u200b costs, were also significant contributors to September&#8217;s inflation.<\/p>\n<h3>Fed&#8217;s Rate Hikes Show Results<\/h3>\n<p>After more than a year of raising interest rates, the\u2064 Federal Reserve has successfully reduced inflation. The current target rate stands at 5.25% to 5.50%, and the recent rate hike may mark the end of \u200dthe\u200b tightening cycle. Fed officials will carefully analyze the details of \u2063this latest \u2064report ahead of their upcoming meeting.<\/p>\n<h3>Inflation&#8217;s Impact on \u2064Biden and the Democrats<\/h3>\n<p>Soaring inflation has negatively affected\u200b households and weakened\u2063 support for President Biden and\u200b his economic \u2064agenda. Republicans have seized upon higher prices \u2064to criticize the administration, attributing inflation to spending legislation, particularly pandemic-related relief measures. However, Democrats argue that\u200d inflation is\u200c a global issue and emphasize that supply-side factors, rather than demand, are \u200bthe primary drivers of\u200d rising prices.<\/p>\n<h3>White House Focuses on Positive Economic Indicators<\/h3>\n<p>The Biden \u200badministration has downplayed the summer&#8217;s inflation\u200b uptick, which \u2062was largely influenced\u2064 by higher gas prices. Instead, they\u2064 have highlighted other positive aspects of the economy, such as the resilient job market and <a title=\"Inflation rises to 3.7% due to increased shelter and energy costs.\" href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/inflation-clocks-in-at-3-7-amid-higher-shelter-and-energy-prices\/\">strong gross\u2062 domestic\u200c product\u2064 growth<\/a>, \u200deven in the face of higher interest rates.<\/p>\n<p>In September, the labor market added 336,000 jobs, surpassing economists&#8217; expectations.\u2062 Additionally, the Bureau of \u2062Economic Analysis reported <a title=\"Hillary: \u2018I\u2019m Thrilled That President Biden Is Taking Advantage Of This Moment To Try To Push the Agenda As Far As Possible\u2019\" href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/hillary-im-thrilled-that-president-biden-is-taking-advantage-of-this-moment-to-try-to-push-the-agenda-as-far-as-possible\/\">robust economic growth<\/a> of 2.1%\u2063 in the second quarter, demonstrating resilience despite the Fed&#8217;s rate hikes.<\/p>\n<h3>Next Steps for the Fed<\/h3>\n<p>The Federal Open Market Committee will convene on October 31 and November \u200d1 to determine the next course of action \u2062regarding \u2064interest rates. While most investors \u200bdo not anticipate a rate\u200c hike during this meeting or further\u200b hikes in the current tightening cycle, the <a title=\"DOJ Seeks to Jail 5 Members of Texas Family for 52-Minute Walk Through the US Capitol on Jan. 6\" href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/doj-seeks-to-jail-5-members-of-texas-family-for-52-minute-walk-through-the-us-capitol-on-jan-6\/\">final decision rests<\/a> with the Fed.<\/p>\n<p><a href=\"https:\/\/www.washingtonexaminer.com\/\">Click here<\/a> to read more from The Washington Examiner.<\/p>\n<p>\u00a0<\/p>\n<h2>How does \u200bthe steady inflation\u2062 rate impact President Biden&#8217;s economic \u2062agenda and\u2064 his plans for infrastructure and social spending bills?<\/h2>\n<p>E Hikes Remain on the Table<\/p>\n<p>Despite the steady inflation rate, the Federal Reserve \u200bhas indicated that it remains open to the possibility of raising \u200dinterest rates to curb inflationary pressures. In \u200ctheir recent\u2062 policy statement, the Fed acknowledged that inflation has been elevated and expects inflation to remain above its target rate for some\u2064 time.<\/p>\n<p>However, the central bank also noted that the timing and pace of future rate hikes\u2063 will depend on various factors, including\u2063 the trajectory of inflation, the labor market, and the overall state of the\u2062 economy. This cautious approach reflects the Fed&#8217;s commitment to maintaining price stability while also <a title=\"Susan Wright heading to runoff election for Texas congressional seat previously held by late husband\" href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/susan-wright-heading-to-runoff-election-for-texas-congressional-seat-previously-held-by-late-husband\/\">supporting economic growth<\/a>\u2064 and job creation.<\/p>\n<h3>Impact on\u2062 President Biden&#8217;s Economic Agenda<\/h3>\n<p>The steady\u2062 inflation rate\u2063 provides some relief for President Biden, \u2063who has faced criticism from Republicans and \u200bsome\u2063 economists for his aggressive spending\u200b plans. Rising prices have fueled concerns about the long-term impact on the economy and the potential for increased government borrowing.<\/p>\n<p>With inflation holding steady, Biden can argue that his policies are not causing runaway inflation and that\u200c the current price increases are\u2064 transitory. This narrative may help him build support for his infrastructure and\u2062 social spending \u2062bills, which he argues will \u200c<a title=\"House Begins Debate On Biden\u2019s .4 Trillion Spending Package Without Knowing How It\u2019s Going To Be Fully Paid For\" href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/house-begins-debate-on-bidens-2-4-trillion-spending-package-without-knowing-how-its-going-to-be-fully-paid-for\/\">stimulate economic growth<\/a> and address longstanding societal challenges.<\/p>\n<h3>Challenges Ahead for the Fed and \u2064Biden<\/h3>\n<p>While the steady inflation rate may\u2063 bring temporary\u200c relief, both the Federal Reserve and President Biden still face significant\u200b challenges moving forward.<\/p>\n<p>The surge in \u2063housing prices, driven by a combination of low interest rates, supply chain disruptions, and increased demand, remains a concern. High housing costs can lead to reduced affordability and can put pressure on households, particularly low-income individuals and families.<\/p>\n<p>Additionally, energy \u200cprices continue to be volatile, influenced by factors such as geopolitical tensions, supply\u2064 disruptions, and shifts in global demand. Rising energy costs can \u200dimpact businesses&#8217; \u200bproduction costs and consumer spending, potentially dampening \u200deconomic growth.<\/p>\n<h3>Conclusion<\/h3>\n<p>As inflation holds steady at 3.7% in September, there is some breathing room for President Biden and the Federal Reserve. The decline in core inflation and the possibility of \u2063future rate hikes indicate that the Fed remains vigilant in its efforts to manage inflationary pressures. However, challenges such as rising housing and \u2062energy costs persist, requiring \u2062continued attention and \u200dstrategic \u2062responses from policymakers.<\/p>\n<p>Overall, the latest \u200cinflation data provides a glimmer of hope for\u200d Biden&#8217;s \u2062economic agenda and the Fed&#8217;s ongoing efforts. Balancing the need \u2063for price stability with the promotion of robust economic growth will \u200brequire careful navigation in the months ahead.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Inflation held steady at 3.7% for the year ending in September, according to the Bureau of Labor Statistics. This news, reported on Thursday, is a positive development for President Joe Biden as it indicates that inflation did not worsen and further accelerate.<\/p>\n","protected":false},"author":1,"featured_media":2064543,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"Inflation rises to 3.7% due to increased shelter and energy costs.","footnotes":""},"categories":[538],"tags":[],"class_list":["post-2064542","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-washington-examiner"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"Inflation rises to 3.7% due to increased shelter and energy costs.","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2064542","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2064542"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2064542\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2064543"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2064542"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2064542"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2064542"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}