CNBC's Steve Liesman joins 'Squawk Box' to break down the latest September consumer price index data. For access to live and exclusive video from CNBC subscribe to CNBC PRO: 🤍cnb.cx/2NGeIvi Consumer prices increased slightly more than expected in September as food and energy price rises offset declines in used cars, the Labor Department reported Wednesday. The consumer price index for all items rose 0.4% for the month, compared with the 0.3% Dow Jones estimate. On a year-over-year basis, prices increased 5.4% versus the estimate for 5.3% and the highest since January 1991. However, excluding volatile food and energy prices, the CPI increased 0.2% on the month and 4% year over year, against respective estimates for 0.3% and 4%. Dow futures were slightly positive following the news but fell sharply through the morning, while government bond yields were mostly lower as investors gravitated toward safe-haven fied income. Gasoline prices rose another 1.2% for the month, bringing the annual increase to 42.1%. Fuel oil shot up 3.9%, for a 42.6% year over year surge. Food prices also showed notable gains for the month, with food at home rising 1.2%. Meat prices rose 3.3% just in September and increased 12.6% year over year. “Food and energy are more variable, but that’s where the problem is,” said Bob Doll, chief investment officer at Crossmark Global Investments. “Hopefully, we start solving our supply shortage problem. But when the dust settles, inflation is not going back to zero to 2 [percent] where it was for the last decade.” Used car prices, which have been at the center of much of the inflation pressures in recent months, fell 0.7% for the month, pulling the 12-month increase down to 24.4%. However, the continued rise in prices even with the drop in vehicle costs could lend credence to the notion that inflation is more persistent than policymakers think. Airline fares tumbled 6.4% for the month after falling 9.1% in July. Shelter prices, which make up about a third of the CPI, increased 0.4% for the month and are up 3.2% for the 12-month period. Owners’ equivalent rent or how much an owner of a property would have to pay to rent it, increased 0.4% as well, its largest monthly gain since June 2006. “This might just be an overshoot after a couple of relatively modest increases, but we can’t rule out the idea that the fundamentals — rapid house price gains, more aggressive landlord pricing, low inventory, and faster wage growth — are pushing up the trend,” wrote Ian Shepherdson, chief economist at Pantheon Macroeconomics. Apparel prices also declined 1.1% in September while transportation services dropped 0.5%. Both sectors have been rising consistently and still showed respective annual gains of 3.4% and 4.4%. Federal Reserve officials have called the current inflation run “transitory,” and attribute it largely to supply chain and demand issues that they expect to subside in the months ahead. However, that view has been receiving substantial pushback lately. “This is one more data point to say, ‘Fed, your trying to convince us that inflation is transitory is just not believable,’” Doll said. “If you know anybody who doesn’t have to live somewhere, doesn’t eat any food and doesn’t use energy, then inflation is maybe not a particular problem. But come on.” » Subscribe to CNBC TV: 🤍cnb.cx/SubscribeCNBCtelevision » Subscribe to CNBC: 🤍cnb.cx/SubscribeCNBC » Subscribe to CNBC Classic: 🤍cnb.cx/SubscribeCNBCclassic Turn to CNBC TV for the latest stock market news and analysis. From market futures to live price updates CNBC is the leader in business news worldwide. The News with Shepard Smith is CNBC’s daily news podcast providing deep, non-partisan coverage and perspective on the day’s most important stories. Available to listen by 8:30pm ET / 5:30pm PT daily beginning September 30: 🤍🤍cnbc.com/2020/09/29/the-news-with-shepard-smith-podcast.html?source=youtube%7Cshepsmith%7Cpodcast Connect with CNBC News Online Get the latest news: 🤍🤍cnbc.com/ Follow CNBC on LinkedIn: 🤍cnb.cx/LinkedInCNBC Follow CNBC News on Facebook: 🤍cnb.cx/LikeCNBC Follow CNBC News on Twitter: 🤍cnb.cx/FollowCNBC Follow CNBC News on Instagram: 🤍cnb.cx/InstagramCNBC 🤍🤍cnbc.com/select/best-credit-cards/ #CNBC #CNBCTV
The Fed used to have two mandates. Maximize employment and stabilize prices. I think on the latter they have failed miserably. But I think anyone can see those dual mandates have shifted to (1)Mitigate Government debt. (2) Protect the stock market.
Stop importing from China, they are screwing us with high price !
Thanks you crooked Democrats
Yeah ex food and energy... who needs to consume food and utilize energy?? That's for poor people.
Probably the only percentage that hit higher for this administration. Got a win
This is the libtard DNC protection networks way of saying inflation was not supply and demand and hand outs were the problem
great 😌 video 💗 <I will always let anyone know to forget predictions and start making good profit now because future valuations are all speculations and guesses.The market is very unstable and you can't tell if it's going bearish or bullish.While myself and others are tradn without fear of making a loss others are being patient for the price to skyrocket. It all depends on the pattern you follow.I was able to make 5 bTC in just September from implementin tradess with tips and info from Mr Bruce with my 1.005 btc..
It’s transitory. By the next time we “transit” the sun, inflation should be coming down.
Eating like I live in college but I’m a 36 year old male
lol the Fed can't raise rates you tools. The Fed has cornered itself and CNBC is still clueless. Hopefully, after the dollar collapses, a real finanical news network will replace CNBC
Inflation is much higher than is being portrayed. You really need to compare prices now with prices in 2019 before the pandemic. Food is just one part of our grocery shopping. Useable goods such as toilet paper, paper towels, soap and detergents, etc. All make up what I consider cost of living. In 2019 I could buy a roll of paper towels for $0.89. That same brand of paper towels has shrunk in size and now cost $1.19. So less product at a higher price. This is true for many products including food.
Man I wanted a dip on some of favorite stocks... what the hell? why is the market going up on this?
1.2% increase in at-home food prices in one month??? Sheesh, at the rate we're going the working man is going to have to stop eating so much and buy himself a smaller belt!! That is just outrageous price inflation!
Can’t wait for the Federal Reserve Diet, soon food will be so expensive we’ll all be skinny thanks to the Fed.
And don’t forget the Federal Reserve Workout plan, soon cars and gas will be so expensive we’ll all have to walk and bike everywhere.
Fed is is full B.S. mode now
yields collapsing on hotter than expected inflation
can these market manipulators make it more obvious?
iNfLaTiOn Is TrAnSiToRy
Good News Translation
Abram put his trust in the LORD, and because of this the LORD was pleased with him and accepted him. Genesis 15:6