Daniel Wolfram
Prices rose 0.4 percent last month as annual inflation reached an estimated 4 percent, keeping pressure on the Donald Trump following catastrophic midterm losses.
New inflation numbers reveal that American living costs climbed faster than economists anticipated last month.
The consumer price index rose 0.4% between September and October, the Labor Department reported on Tuesday, according to the Associated Press (AP).
While that marked a slight step down from September’s 0.6% rise, both overall inflation and underlying expenses landed a tenth of a percentage point above forecasts.
Bad news at checkout
Federal officials could not publish an official annual rate because last year’s government shutdown halted data gathering. Even so, private calculations show the trend remains troubling.
Consumer prices likely spiked 4% in October compared with a year earlier, according to Riccardo Trezzi, founder of the consulting firm Underlying Inflation and a former Federal Reserve economist.
Prices rose 0.3% for the second straight month. That steady pace puts inflation well past the central bank’s official 2% target. “It’s worrisome. There is a sense that inflation is broad, persistent, a little bit everywhere,” said Trezzi, noting, “The Fed should be very worried.”
Voters send a message
Rising costs are no longer just at the gas station. The wider economy expanded at a 3.4% annual rate during the third quarter, largely driven by robust consumer spending.
That heavy demand, combined with tariffs, fuel costs, and global unrest, continues to keep prices elevated across retail shelves.
Public frustration over those daily expenses just reshaped Capitol Hill. Voters ousted Republican majorities from both the House and the Senate in last week’s midterm elections, handing sweeping victories to Democrats.
In an AP Voter Poll of 100,000 people, roughly two-thirds blamed President Donald Trump for the swelling cost of living. Nearly nine in ten respondents called daily expenses a “crucial” or “major” factor in their vote.
Trump has publicly acknowledged voter anger over fuel prices and the war with Iran. However, the president has shown no sign of changing course.
