The inflation numbers just came through for the month of October. Good news! Just kidding, it's terrible news ... Inflation blew past expectations and hit a high mark not seen in over three decades:
Inflation across a broad swath of products that consumers buy every day was even worse than expected in October, hitting its highest point in more than 30 years, the Labor Department reported Wednesday.
The consumer price index, which is a basket of products ranging from gasoline and health care to groceries and rents, rose 6.2% from a year ago. That compared to the 5.9% Dow Jones estimate.
That, ladies and gents, is not good.
Consumer prices — that is, the prices you and I pay for the things we buy every day — soared 6.2% in October. The expert economists were expecting a reading of 5.9%. If you follow these things you will know: That is a big miss. And it's the highest inflation reading since December 1990, before many people reading this were alive.
Fuel oil prices soared 12.3% for the month, part of a 59.1% increase over the past year. Energy prices overall rose 4.8% in October and are up 30% for the 12-month period.
Used vehicle prices again were a big contributor, rising 2.5% on the month and 26.4% for the year. New vehicle prices were up 1.4% and 9.8% respectively.
Food prices also showed a sizeable bounce, up 0.9% and 5.3% respectively. Within the food category, meat, poultry, fish and eggs collectively rose 1.7% for the month and 11.9% year over year.
The price increases meant that workers fell further behind.
In a separate report, the Labor Department said real wages after inflation fell 0.5% from September to October, the product of a 0.4% increase in average hourly earnings that was more than offset by the CPI surge.
- Gas prices: Way up
- Food prices: Way up
- Rent prices: Way up
- Energy prices: Way up
- Vehicle prices: Way up
And inflation for the prior month, September, came in at 5.4% ... Which means it is accelerating.
Wage growth is nowhere near making up for the rise in prices. The numbers are dreadful. Cash is worth less every month.
And it's going to get worse.
