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After the Bell: Holiday buying expected to drop amid continued inflation surge

INDIANAPOLIS (WISH) — A new report shows inflation is still surging in the United States.

The consumer price index follows inflation closely. It shows inflation rose more than expected in August, 0.1% from July.

Even with falling gas prices, inflation now stands at 8.3% year on year.

Many economists had expected these numbers to fall, but they did the opposite. Some numbers did fall: Gas prices dropped 10% for the month, and energy prices fell 5%. But, food prices went up 0.8%, and housing increased 0.7%.

These numbers also means the Federal Reserve will likely raise rates by the higher 75 basis points when it meets next week.

On the markets, that’s all investors needed to hear to panic. All three indexes fell at least 3%, with the Dow losing 1,250 points.

These inflation numbers also mean Americans plan to spend a lot less money over the upcoming holiday season. Last year, people increased spending by 15% for November and December. This year, economists say, that number will be 4% to 6% percent instead.

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