MetroIntelligence Economic Update by P. DUFFY
CPI rebounds to 0.4 percent in September, up 8.2 percent year-on-year
The Consumer Price Index for All Urban Consumers (CPI-U) rose 0.4 percent in September after rising 0.1 percent in August, and was up 8.2 percent year-on-year. The index for all items less food and energy rose 0.6 percent in September, as it did in August, and rose 6.6 percent year-on-year.
Federal Reserve meeting minutes shows continuing commitment to lower inflation with more rate hikes
In their consideration of the appropriate stance of monetary policy, participants concurred that the labor market was very tight and that inflation was far above the Committee’s 2 percent inflation objective. Against this backdrop, all participants agreed that it was appropriate to raise the target range for the federal funds rate 75 basis points at this meeting and to continue the process of reducing the Federal Reserve’s securities holdings, as described in the Plans for Reducing the Size of the Federal Reserve’s Balance Sheet that the Committee issued in May. Participants reaffirmed their strong commitment to returning inflation to the Committee’s 2 percent objective, with many stressing the importance of staying on this course even as the labor market slowed.
Remodeling market sentiment softened in 3Q2022 but remains in positive territory
The NAHB/Westlake Royal Remodeling Market Index (RMI) for the third quarter of 2022 posted a reading of 77, declining 10 points from the third quarter of 2021. The Current Conditions component index was 82, dropping 8 points compared to the third quarter of 2021. Year-over-year, the subcomponent measuring large remodeling projects experienced fell 6 points to 80, moderately-sized remodeling projects dropped 8 points to 83, and the subcomponent measuring small remodeling projects declined by 6 points to 85.