In August, it appeared price hikes may be slowing down, but new numbers show inflation is accelerating again.
A report from the Bureau of Labor Statistics finds overall prices jumped 8.2% in September, compared to a year earlier.
Inside the numbers – prices at the grocery store increased 13%. Eggs are up 30.5%, coffee is 15.7% higher.
Home costs are also rising. Electricity is up 15.5% and natural gas used to heat homes has increased 33.1%.
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Prices at the pump are marching higher after a drop earlier this summer. According to AAA, the national average has jumped about $.20 in the past month.
The new report will likely bring new action from the Federal Reserve during their next meeting in November. The Fed has increased interest rates five times this year in an attempt to bring down inflation, but the strategy is having little impact.
Analysts expect the Fed to increase rates by three-quarters of a percentage point next month, the same action they took in September.
“In the minutes from the Fed’s September meeting, they articulated something very clearly, they said they are much more concerned about doing too little on interest rates and inflation rather than too much,” says CBS News business analyst Jill Schlesinger.
If the Fed stays aggressive and raises rates in November and December, it could push a key interest rate to a 14-year high by the end of the year. Even with action from the Fed, prices are expected to march even higher in the coming months and millions of holiday shoppers will likely experience sticker shock.
But there is one bright spot. The latest report shows the price of televisions is down 17.9% compared to a year ago and smartphones dropped 21%.
