Wholesale Prices Stabilize
In September, wholesale prices showed no change, indicating continued easing in inflation, with the producer price index (PPI) flat for the month and up 1.8% year over year. Excluding food and energy, the PPI rose 0.2%, matching expectations, while the consumer price index (CPI) rose 0.2% for the month and 2.4% from a year ago. The data suggests inflation has cooled from its peak but remains above the Federal Reserve’s 2% target, with economists expecting a slight increase in the personal consumption expenditures (PCE) index later in October.
Inflation Rises Slightly
In September, inflation was higher than expected, with the consumer price index (CPI) rising 0.2% for the month and 2.4% year over year, both slightly above forecasts. Core inflation, excluding food and energy, increased 0.3% monthly and 3.3% annually, also above expectations. A separate report showed a spike in jobless claims, hitting a 14-month high, largely due to the effects of Hurricane Helene and a Boeing workers' strike. Despite higher inflation, the Federal Reserve remains focused on long-term trends, with officials confident that inflation is cooling and anticipating more rate cuts in the coming months.
Boeing Strike Drags On
Boeing is cutting 10% of its workforce, or about 17,000 jobs, as losses mount and a machinist strike halts production. The company is also delaying the launch of its 777X wide-body plane to 2026, pushing it six years behind schedule. CEO Kelly Ortberg, just two months into his role, announced these cuts as part of a plan to stabilize Boeing amid ongoing financial challenges, including a $3 billion commercial airplane loss and a $2 billion defense loss for the third quarter. The machinist strike, which began in mid- September, has led to increased tensions with the union, and Boeing filed an unfair labor practice charge against the workers.
Biden Announces Funding After Milton
During a weekend visit to Florida, President Joe Biden toured areas devastated by back-to-back hurricanes and announced $612 million in federal funding for energy infrastructure projects in the Southeast to strengthen the region's electrical grid. He emphasized the importance of unity during disasters, stating that Americans come together to help one another regardless of political affiliations. Two Florida-based projects, receiving $94 million, will focus on improving power system reliability and storm resilience. Biden also thanked local officials and first responders for their efforts, acknowledging their significant role in saving lives and aiding recovery after Hurricane Milton, which caused 16 deaths and left over three million people without power.
