After September's Consumer Price Index (CPI) came in hotter than expected, Mark Hamrick, Bankrate senior economic analyst, joins Wealth! to discuss what it will take for inflation to normalize and how it is affecting US consumers.

Hamrick believes that energy will be a key component for inflation moving forward. "Thank goodness that the United States is a tremendous supplier of crude oil (CL=F, BZ=F), where, for example, we are reliant on our own supply," he explains. However, oil is a global marketplace, and with tensions rising in the Middle East, there could be issues down the line. He also points to the price of eggs and motor vehicle insurance as other categories straining Americans' wallets.

As inflation continues to be a stressor, Hamrick notes that consumers are reacting differently depending on their income level and needs. "What we really need is the job market to continue to hold up. That's number one. If we do see an actual recession develop, that obviously will lead to more interruption of incomes," he tells Yahoo Finance.

According to a recent Bankrate survey, economists say the odds of a US recession within the next year hold near 1-in-3. While this is a relatively low figure, Hamrick still sees it as a little elevated. If employment continues to hold up, he notes that interest rates can continue to fall, ultimately making prices more affordable for consumers.

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This post was written by Melanie Riehl