Source: The American Prospect
by Robert Kuttner
“On Wednesday, the Consumer Price Index for September came in hotter than expected. Inflation was up at an annual rate of 3.7 percent. Gasoline prices rose 34 percent over the past year, and home heating oil is up a staggering 74 percent. Combined with other factors, this news spooked the stock market. The tech-heavy Nasdaq fell by 2.7 percent. Then on Thursday, the Producer Price Index (PPI) report clocked a wholesale price rise of 1.3 percent just in September, an increase of 6.3 percent over the past year, and the largest 12-month increase since December 2022. The other factors signaling deep trouble include a bond market that keeps bidding up rates on long-term Treasury securities, now the highest since 2002, reflecting expectations of more inflation, and increasing interest costs throughout the economy. This in turn adds to consumer and small-business pain and increases borrowing costs for the heavily leveraged tech sector.” (10/16/26)
https://prospect.org/2026/10/16/perfect-economic-storm-trump-inflation/