New York, United States—Inflation kept its hold on the US economy in September, government data showed Thursday, with a higher-than-expected jump adding to headwinds facing President Joe Biden’s Democrats shortly before midterm elections. READ:
Thursday’s consumer price report—the last before the Nov. 8 vote to decide control of Congress—showed US prices rose 0.4 percent in September compared to August, twice the 0.2 percent projected by analysts, with increases for food, housing, and medical care weighing on consumers.
In an interview with CNN on Tuesday, Biden acknowledged the possibility of a mild recession but said he didn’t think it was likely. Treasury Secretary Janet Yellen and other Biden administration officials have defended their policies, attributing price increases to supply chain problems and other unforeseen events, such as the Russian invasion of Ukraine that has boosted prices for energy, wheat, and other commodities.
Analysts said the disappointing report not only boosts the odds of another 0.75 percentage point hike in November, but also raises the chances for a supersized December rate hike, or for bigger increases down the road.