Sangamon Sun

The Consumer Price Index report for September was released on Oct. 13 and it did not bring good news for households. The overall index climbed 8.2% from the previous year, down from 8.3% in August. 

The slight decrease was due to gasoline prices falling, a trend that did not last. The New York Times called every other detail of the CPI report ‘worrying.’ These results have reputable news publications to global investment strategists believing the Federal Reserve will be raising interest rates again in November. With midterms approaching, Republican candidates looking to take Democratic seats are elevating this economic issue and promising monetary and fiscal policy change in Springfield.

"Doris Turner and her Democrat friends are failing Central Illinois working families,” Sandy Hamilton, a Republican candidate for IL-48, said. “While we struggle to keep up with out of control inflation, leading to record high prices for everyday necessities like food, gas, electricity, and rent, Doris is looking for new ways to raise our taxes. When elected to the Illinois State Senate I will fight to repeal the grocery tax and the gas tax hike so that we can put that money back where it belongs—in the pockets of hard working families."

The New York Times reported that the ‘so-called’ core index increased by 6.6%, a 0.6 point increase from August. This change was calculated by removing food and fuel in order to accurately assess underlying trends. 

Economists had predicted a 0.2 point increase in month-to-month price change. According to the New York Times, the price index picked up by 0.4 percent from August, which the paper called ‘worrying.’ 

The price increases are affecting all facets of life, including rent. This year through September, rents for primary residences have seen a 7.2% increase. Historically, housing costs climb around 3% per year. It is important to note that this metric has a significant impact on inflation overall and tends to move slowly. 

NBC reported that the Biden Administration's Inflation Reduction Act will help tame inflation, but any benefits might be slow in coming. The article pointed out that provisions in the law are set to take effect over 10 years. 

According to Penn Wharton’s Budget Model (PWBM) and the Congressional Budget Office (CBO), the Inflation Reduction Act’s impact on inflation is indistinguishable from 0. PWBM projected the law would add $25 billion to the deficit in 2024 and 2025, with no effect in 2023, while CBO projected $20 billion in deficit reduction in 2023 and no ‘significant’ effects in 2024 or 2025. Either way, these projections are too insignificant to affect the Bureau of Economics Report to the first decimal place. 

Hamilton, on her website, says she is running as a "conservative who wants to govern while not sacrificing … core principles.” She has been a resident of Springfield for more than 20 years and is happily married with three boys. 

The Bureau of Labor Statistics says Springfield, where the 48th District is located, has a worse unemployment rate and weekly wage than the national average. The Springfield area has a 4.3% unemployment rate and $1,182 average weekly wage, compared to 3.8% and $1,374 nationally. These economic figures compound the negative impacts of inflation.