The Core Consumer Price Index, which excludes food and energy prices, rose to 6.6% in September from 6.3% in the prior month. This was the highest it has been since August of 1982. Overall inflation was recorded at 8.2% in September.
This report almost guarantees that the Fed will continue to raise its prime interest rate. Most economists are expecting another 0.75% increase.
The really bad news is the fact that even with the Federal Reserve Bank raising interest rates for most of this year, inflation refuses to be tamed. Since March, the Fed Funds Rate has already been increased by 3 full percentage points.
One of the problems is that the Federal Government continues to overspend. In order to tame inflation, governments normally need to reign in spending and balance their budgets, but it doesn’t look like that’s going to happen any time soon.
In response to this economic news, most of the stock market indicators rose by over 2% yesterday. It’s a world gone mad.
Let me leave you with this.
Although it seems like I write this same column every month, one thing is certain.
It’s going to be a while before we get out of this mess. In recessionary times, Entrepreneurs must manage their enterprises differently.
Watch your numbers like a hawk. Your monthly financial statements have never been so important. Know your numbers and where your break-even points are.
When you need to raise your prices, get to it. Entrepreneurs who aren’t vigilant in their pricing strategies are normally the first ones to file bankruptcy.
Make sure that your prices include whatever you need to live a reasonable lifestyle. No business will do well when ownership suffers.
If your business contracts and you can cut some staff, don’t hesitate. The money you save will be money you need.
Don’t forget to take care of yourself. We can’t take care of anyone if we don’t first take care of ourselves.
And do so knowing that we’re right there with you. If you need to talk, you know my number.
We’re all going to get through this. Let’s get through it together.
Accounting Solutions Ltd. stands ready to complete our mission and purpose of protecting you, your family, and your business. Whether you need Employee Retention Credits, M&A Due Diligence, Payroll Services, or Accounting and Tax Work, you have but to ask. I’m here and I remain,
Sincerely yours,
Chris Amundson
President
Accounting Solutions Ltd.
773-267-7500
888-310-0300
www.AccountingSolutionsLtd.com
www.SalarySolutions.net
Note that the only professional services provided by Accounting Solutions Ltd. are those specified in a written communication from our office detailing the scope of services to be rendered and the terms and conditions applicable to the engagement.