US stocks down as consumer prices continue to hike

WAM
14 Oct 2022, 07:36 GMT+10

NEW YORK, 13th October (WAM) -- A U.S. Labour Department report said that consumer prices rose more than expected last month as rents hiked by the most since 1990 and the cost of food also increased.

The development comes to reinforce projections that the Federal Reserve will introduce a fourth 75-basis-point interest rate hike next month.

The data followed on the heels of last week's strong employment report, which showed solid job gains in September and a drop in the unemployment rate to a pre-pandemic low of 3.5 percent, Reuters reported.

Food prices increased 0.8 percent, with the cost of food at home advancing 0.7 percent amid rises in all six major grocery store food groups. Owners' equivalent rent, a measure of the amount homeowners would pay to rent or would earn from renting their property, shot up 0.8 percent, the largest increase since June 1990.

The hefty jumps offset a 4.9 percent decline in petrol prices. But petrol prices have likely bottomed following last week's decision by the Organization of Petroleum Exporting Countries and allies to cut oil production.

Watch latest videos

News RELEASES

Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Africa Leader.

More Information

13 ℃

Mostly Cloudy in Cape Town

International

Section

China, South Korea seek to expand cooperation in chip sector

DETROIT, Michigan: Amid broader global concerns over semiconductor chip supplies, sanctions and national security, Chinese commerce minister Wang Wentao said ...

US Air chief General Charles Brown to become Chairman of Joint Chiefs

WASHINGTON D.C.: The White House announced this week that President Joe Biden has chosen US Air Force chief General Charles ...

Typhoon Mawar strikes Guam, much of island without power, water

GUAM: After Typhoon Mawar brought strong winds and torrential rains, large areas of the US Western Pacific territory of Guam ...

US government, business warned of Chinese spying on infrastructure

NEW YORK CITY, New York: In one of the largest known Chinese cyber-espionage campaigns against American critical infrastructure, a state-sponsored ...