McHenry Times

The September Consumer Price Index (CPI) was released Thursday, showing the increase or decrease in costs for a number of common goods, a common measure of inflation.

In September, the overall index climbed 8.2% from the previous year, down just 0.1% from  August.

The 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 resulted in many experts, analysts and economists predicting that the Federal Reserve will raise interest rates again in November. With midterms approaching, Republicans are elevating this economic issue.

State Sen. Craig Wilcox (R-McHenry) who represents Illinois' 32nd District, criticized incumbent Democrats saying that they had the opportunity to pass substantive tax relief to ease the burden of inflation, but they instead "settled" for what he considered minor action.

"As Illinois families continue to grapple with record-high inflation, they have to make tough choices with their family budgets," Wilcox said. "Majority Party Democrats had an opportunity to provide permanent, substantive tax relief on gas, groceries, medical supplies and other essentials, but  they didn’t. Instead, they chose to deliver short-term, election-year mini-relief that barely moves the needle for struggling families and expires shortly after the election. Legislators could have and should have done a lot more to help Illinois families.”

The New York Times reported that core CPI index increased by 6.6% in September, a 0.6% from August. This percentage change was calculated by removing food and fuel in order to accurately assess underlying trends.

Economists had predicted a 0.2% increase in month-to-month price change. According to the New York Times, the price index picked up by 0.4% from August.

From January of 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, the Times reported.

NBC reported the Biden administration has taken action in an effort to combat inflation with the Inflation Reduction Act. However, the article pointed out that provisions in the law are set to take  effect over the course of 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.

The 32nd District encompasses much of McHenry County and the communities of McHenry, Woodstock, Antioch, Fox Lake, Ridgefield and others. Wilcox is running for re-election against Democrat Allena Barbato.

According to the Bureau of Labor Statistics, the Rockford, Illinois area, where the 32nd District is located, has a worse unemployment rate and lower average weekly wage than the national  average. The Rockford area has a 6.8% unemployment rate and a $1,043 average weekly wage, compared to 3.8% and $1,374 nationally. These economic figures only compound the negative impacts of inflation.