Inflation Remains High but Gradually Decreasing

Inflation for the month of September came in at 8.2%. Down slightly from 8.3% the month prior.

While energy and utility prices were the major driving force behind the initial surge, inflation now looks to be driven by soaring housing and food costs.

It looks like the Fed will be pushed to increase rates again by another .75%. What does this mean for you?

First the interest you pay on variable rate debt will continue to increase. Things like credit cards, student loans, and some home equity loans are getting more expensive.

If you are home shopping, the average interest rate is approaching 7% making monthly payments for the average starter home hundreds or even thousands of dollars more expensive.

Interest rates for car loans are also increasing, and new cars are getting more expensive. There is a slight reprieve in the used car market where prices have seemed to have stabilized from earlier in the year.

Luckily the market saw the decrease in overall inflation as generally positive today. The S&P 500, Nasdaq, and Dow indices are all on track to close at least 2% higher. Your portfolio is breathing a sigh of relief after a few rough days.

As always if you have questions on how this might affect your portfolio, please reach out to me here.