Consumer prices rose faster than expected for the second month in a row. We’ll also look at five things to know about a major Social Security boost and how oil production cuts could bring down the global economy.
But first, there is a national Adderall shortage.
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Inflation, consumer prices accelerate in September
Consumer prices rose at a faster pace than expected in September, with inflation accelerating for the second month in a row, according to data released Thursday by the Labor Department.
- The consumer price index (CPI), which measures inflation, rose 0.4% in September and 8.2% over the past 12 months, according to the Bureau of Labor Statistics (BLS).
- Economists expected prices to rise about 0.3% last month and
8.1% over the past year.
The background: The BLS pinned the September surge in inflation on rising prices for housing, food and medical care, which outpaced a 4.9% drop in gasoline prices last month. Excluding food and energy products, the prices of which tend to be more volatile, consumer prices increased by 0.6%.
“The Fed is trying to get inflation under control, but you wouldn’t know that by looking at today’s CPI data,” said John Leer, chief economist at Morning Consult.
“As energy prices fall, service inflation in housing and transportation is at an all-time high, forcing consumers to make tough spending decisions through the end of the year.”
Sylvan breaks it down here.
Five things to know about today’s Social Security COLA
Social Security payments will rise by an average of $140 per check as the National Pension System is set to receive its biggest cost-of-living adjustment (COLA) in 40 years.
The rise was 8.7%, an attempt to close the gap caused by inflation which hit 9.1% in June before easing slightly over the summer. Between 2010 and 2020, Social Security COLAs averaged just 1.7%.
- COLA is especially important amid stock market declines, which hit seniors’ retirement accounts at the wrong time.
- In the United States, millions of children whose parents have retired or died also receive Social Security benefits each month.
- This comes with a lower premium price for Medicare Part B, which covers hospital and doctor visits for seniors.
Tobias Burns has more here.
OPEC+ cuts could be ‘tipping point’ for recession, warns world energy agency
Oil supply cuts from a group of countries known as OPEC+ could be the “tipping point” for a global economy near recession, the International Energy Agency (IEA) has warned. ).
“With relentless inflationary pressures and rising interest rates, rising oil prices could be the tipping point for a global economy already on the brink of recession,” the organization said in its new report on the oil market.
- The IEA, however, said in its new report that supply is likely to be reduced by less than the total cut of 2 million barrels announced by the group of oil producers.
- Indeed, most OPEC+ members have already missed their production targets.
Rachel Frazin has the details.
Hickenlooper Requests Crypto Securities Rules From SEC
Sen. John Hickenlooper (D-Colo.) Urges the Securities and Exchanges Commission (SEC) to enact regulations for digital asset securities through a transparent notice-and-comment regulatory process.
In a letter sent to the SEC on Thursday, Hickenlooper wrote that existing laws and regulations do not apply to how crypto assets are used in the market.
- The lawmaker asked the agency to clarify what types of digital assets are securities, explain how to issue and list digital securities, establish a registration service for digital asset securities trading platforms , to establish regulations on how the trading and custody of digital assets should be carried out, and to determine the information that potential investors must be informed of.
- His letter comes a week after the SEC announced that it had reached a
$1.26 million settlement with famed entrepreneur Kim Kardashian for promoting a cryptocurrency service without disclosing to the agency that the company paid her for the promotion.
Olafimihan Oshin from The Hill digs here.
Good to know
Rents rose fastest in Oklahoma City in September, where asking rent rose 24% year-over-year even as the national rental market continues to slow, according to new analysis.
Analysis by real estate firm Redfin found that while median asking rents have risen 9% nationwide over the past year to $2,002 per month, they are also slowing significantly. September marks the fourth consecutive month that the growth in asking rents has slowed.
Other things we keep an eye on:
- The Biden administration on Thursday extended the country’s COVID-19 public health emergency for the next 90 days as officials prepare for a possible spike in infections over the winter.
- The Environmental Protection Agency (EPA) said Louisiana may have discriminated against black communities who live near sources of air pollution in the state.
- Meta filed a motion Thursday asking a court to dismiss a Federal Trade Commission (FTC) lawsuit seeking to block the tech company’s acquisition of virtual reality (VR) company Within Unlimited.
That’s all for today. Thanks for reading and check out The Hill’s Finances page for the latest news and coverage. Well see you tomorrow.