Advocacy News – Oct. 26, 2022
Numbers released over the last several days show that price increases are still with us and putting enormous pressure on businesses and on family budgets. What is the ongoing outlook and what does 2023 hold? Read on and register for the MI Chamber’s Economic & Business Outlook Nov. 10 for these answers and more.
In the meantime, as inflation rose in September by 0.4% from August and is up 8.2% on an annual basis, here are highlights from the U.S. Chamber of Commerce (USCC).
Why it matters:
We are far from the Fed’s 2% target rate of inflation. The persistence of core inflation will be troubling to the central bank.
By the numbers:
Price increases of necessities are putting enormous pressure on family budgets:
- Food prices were up 0.8% from August to September and 11.2% annually.
- Gas prices were down 4.9% from August to September but are still up 18.2% from a year ago.
- Electricity was up 0.4% on the month and 15.5% annually.
- Housing costs were up 0.7% from August to September and are up 6.6% annually.
- New car prices rose 0.7% from July and are up 9.4% annually.
- Used car prices fell 1.1% but are up 7.2% annually.
Bottom line:
The stubborn persistence of monthly inflation makes any call of “peak inflation” premature. Look for the Fed to continue raising interest rates.
Learn more:
USCC Chief Economist Curtis Dubay released a new slide deck for October with the latest inflation data.
And the MI Chamber’s annual, in-demand Economic & Business Outlook is happening virtually Nov. 10. Join other business and community leaders from across the state to hear the latest updates and insights from economists and the experts. Make sure to register today!