Lake County Gazette

The Bureau of Labor Statistics (BLS) released the September Consumer Price Index (CPI) on Thursday. The CPI measures the increase or decrease in costs for a number of common goods, and is 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, Republican candidates looking to take Democratic seats are elevating this economic issue. Adam Solano, a candidate for State Senate in Illinois' 31st District, criticized incumbent Democrats saying that they have only exacerbated economic burdens caused by inflation. He said that prices for "everyday necessities like food, gas, electricity and rent" are out of control while Democrats push for higher taxes.

The New York Times reported that core CPI index increased by 6.6% in September, a 0.6% difference 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, which the paper called "worrying."

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.

According to the BLS, the Lake County and Chicago areas, where the 31st District is located, has a worse unemployment rate and comparable average weekly wage than the national average. The region has a 4.9% unemployment rate and more than a $1,100 average weekly wage, compared to 3.8% and $1,374 nationally. These economic figures only compound the negative impacts of inflation.

“In Lake County, working families are getting slammed by the economic failures of Democrats in Springfield and Washington,” Solano said in a statement. “While we struggle with record high prices for everyday necessities like food, gas, electricity and rent due to out of control inflation, Mary Edly-Allen and her Democrat allies in Springfield continue to push for higher taxes on hard-working people. When elected to the Illinois State Senate, I will push to repeal unnecessary financial burdens like the grocery tax and the Democrats’ recent gas tax hike so that you can keep more of your hard-earned paycheck and ensure your family can make ends meet.”

Solano is a Lake County native and has lived in Grayslake since 1996. He began his career in financial services in 1993 and later branded his practice under Lakeside Financial Group. He has continuously served in local professional groups, providing his knowledge to peers in the same profession and mentoring up and comers.

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.