White House looks for positive side of CPI data

The White House said there is indicator of progress in Thursday’s inflation reading though the Federal Reserve is expected to respond by aggressively by raising interest rates once again in November’s meeting.

September’s CPI, measuring the changes in prices for a slate of consumer goods and services, showed that American consumers continue to be beaten by higher prices despite unprecedented interest rate hikes by the Fed in recent months aimed at taming inflation.

CPI data from the Bureau of Labour Statistics showed that annual inflation rose by 8.2% in September, a slower increase than the 8.3% rise seen in August. Economists had projected the pace of price increases would slow to 8.1% last month. On a monthly basis, overall consumer prices increased by 0.4% from August.

After Thursday’s CPI report was released, the White House pointed out that inflation over the past three months has averaged 2% – down from 11% in the quarter prior to that. That’s “progress,” a White House official told CNN – even as they acknowledged there is more work to do.

Biden’s official statement similarly reflected these sentiments, saying “even with this progress, prices are still too high.”