Inflation picked up again in September, giving Americans another reason to watch their budgets and giving the Federal Reserve less room to offer relief on interest rates.

The Consumer Price Index, or CPI, showed that consumer prices rose 3.7% over the past year, up from 3.4% in August. Prices increased 0.6% during September alone, compared with a 0.4% increase the previous month. Gasoline accounted for more than half of that monthly jump.

For consumers, everyday expenses are taking another bite out of their paychecks. For investors, the question is whether stubborn inflation will push interest rates higher and make it harder for companies to grow their profits.

What Is Driving Prices Higher?

Gasoline was the biggest problem in September, rising 9.1% on a seasonally adjusted basis. Shelter costs also increased 0.4%. However, that has been good news for investors that jumped into oil stocks, like Exxon Mobil (NYSE: XOM) and Chevron (NYSE: CVX).

Sincerely,

Ian Cooper