High inflation and efforts to tame it defined 2022 economy
2 years ago

High inflation and efforts to tame it defined 2022 economy

Associated Press  

WASHINGTON — For the economy, 2022 was a throwback year. The Fed’s officials, it turns out, underestimated how pay increases, federal aid, supply shortages and a pent-up desire by consumers to spend would conspire to accelerate inflation — and keep it high. “We will see much better inflation numbers over the course of the next 12 to 18 months.’’ Yet for now, the pain of higher prices continues to inflict hardships on many. But Fed Chair Jerome Powell suggested that higher inflation was likely “transitory’’ and would ease once global supply chain bottlenecks unsnarled. According to the inflation gauge the Fed favors — the government’s personal consumption expenditures price index — services prices were up a brisk 0.4% in October and 0.6% in both September and August.

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History of this topic

Column: American economists and consumers got inflation wrong during its recent surge. They still do
2 months, 4 weeks ago

Column: American economists and consumers got inflation wrong during its recent surge. They still do

LA Times  

Sen. JD Vance tried to blame the $4 price of a dozen eggs on Kamala Harris in this campaign video. The “strong policy response” Powell referred to was the Fed’s raising of short-term interest rates 11 times, a total of 5.25 percentage points, from March 2022 through July 2023. In November 2021, however, Powell told Congress that it was “probably …

Russia’s Central Bank hikes interest rate as inflation soars
4 months, 4 weeks ago

Russia’s Central Bank hikes interest rate as inflation soars

Associated Press  

MOSCOW — Russia’s Central Bank on Friday raised its key lending rate to its highest level in more than two years to stem soaring inflation in an overheated economy hit by Western sanctions in response to Moscow’s military action in Ukraine. “For inflation to begin decreasing again, monetary policy needs to be tightened further.” It noted that inflationary risks have …

Something is happening to the US economy only seen once before
4 months, 4 weeks ago

Something is happening to the US economy only seen once before

Daily Mail  

The US economy accelerated last quarter, with consumers and businesses increasing their spending despite the continual pressure of high interest rates. GDP rose at an annual rate of 2.8 percent for the quarter from April through June 2024 The GDP report showed that businesses are continuing to invest and household spending remains strong. Alongside the growth of the economy, inflation …

US inflation eases to 3.3% in May, defying expectations for slight rise
6 months, 1 week ago

US inflation eases to 3.3% in May, defying expectations for slight rise

Hindustan Times  

Stock markets surged Wednesday after data showed US inflation slowed in May, raising hopes the Federal Reserve will cut interest rates later this year. "The cool inflation numbers should boost investor confidence for a Fed rate cut in the second half of 2024," said Bret Kenwell, US investment analyst at trading platform eToro. With inflation slowing and other recent data …

Inflation eases in May, but major relief on interest rates not coming soon
6 months, 1 week ago

Inflation eases in May, but major relief on interest rates not coming soon

LA Times  

Federal Reserve Chair Jerome H. Powell and his colleagues at the central bank have kept interest rates at a more than 20-year high to fight inflation. The Federal Reserve has raised interest rates to the highest level in more than two decades to fight inflation, and on Wednesday policymakers said the fight wasn’t over. “But we don’t see ourselves as …

US economic growth last quarter revised down from 1.6% to 1.3%, inflation cools
6 months, 3 weeks ago

US economic growth last quarter revised down from 1.6% to 1.3%, inflation cools

Hindustan Times  

The U.S. economy grew more slowly in the first quarter than previously estimated after downward revisions to consumer and equipment spending and a key measure of inflation ticked down, keeping the Federal Reserve on track to possibly begin cutting interest rates before the end of the year. Details of the report showed that consumer spending growth, revised down by 0.5 …

US inflation eased last month in the first slowdown of 2024
7 months, 1 week ago

US inflation eased last month in the first slowdown of 2024

Associated Press  

WASHINGTON — Led by lower food and auto prices, inflation in the United States cooled slightly last month after three elevated readings, likely offering a tentative sigh of relief for officials at the Federal Reserve as well as President Joe Biden’s re-election team. Instead, he stressed that the Fed’s policymakers need “greater confidence” that inflation is falling to their 2% …

US growth slowed sharply last quarter to 1.6% pace, reflecting an economy pressured by high rates
8 months ago

US growth slowed sharply last quarter to 1.6% pace, reflecting an economy pressured by high rates

Associated Press  

WASHINGTON — The nation’s economy slowed sharply last quarter to a 1.6% annual pace in the face of high interest rates, but consumers — the main driver of economic growth — kept spending at a solid pace. Gregory Daco, chief economist at the tax and consulting firm EY, noted that the underlying economy looks solid, though it’s slowing from last …

Wholesale inflation in US slowed further last month, signaling that price pressures continue to ease
1 year ago

Wholesale inflation in US slowed further last month, signaling that price pressures continue to ease

Associated Press  

Wholesale inflation in the United States was unchanged in November, suggesting that price increases in the economy’s pipeline are continuing to gradually ease. The Labor Department reported Wednesday that its producer price index — which tracks inflation before it reaches consumers — was flat from October to November after having fallen 0.4% the month before. Excluding volatile food and energy …

The world economy will slow next year because of inflation, high rates and war, OECD says
1 year ago

The world economy will slow next year because of inflation, high rates and war, OECD says

Associated Press  

WASHINGTON — The global economy, which has proved surprisingly resilient this year, is expected to falter next year under the strain of wars, still-elevated inflation and continued high interest rates. China’s “consumption growth will likely remain subdued due to increased precautionary savings, gloomier prospects for employment creation and heightened uncertainty,″ the OECD said. The world economy has endured one shock …

The world economy will slow next year because of inflation, high rates and war, OECD says
1 year ago

The world economy will slow next year because of inflation, high rates and war, OECD says

The Independent  

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What’s pushing inflation down? More goods, workers and housing
1 year, 1 month ago

What’s pushing inflation down? More goods, workers and housing

Associated Press  

WASHINGTON — Long past its painful peak, inflation in the United States may be heading steadily back toward its pre-pandemic levels, without the need for further interest rate hikes by the Federal Reserve. Overall inflation didn’t rise from September to October, the first time that consumer prices collectively haven’t budged from one month to another in more than a year. …

Americans continue to feel better about inflation and the economy
1 year, 4 months ago

Americans continue to feel better about inflation and the economy

CNN  

Washington, DC CNN — US consumers have been feeling a whole lot better this summer as inflation has continued to slow. Consumer sentiment tracked by the University of Michigan rose 11% in July from the prior month, reaching its highest level since October 2021, according to a final reading of the month’s data. “Overall, the sharp rise in sentiment was …

US economy unexpectedly accelerated to a 2.4% growth rate in April-June quarter despite Fed hikes
1 year, 4 months ago

US economy unexpectedly accelerated to a 2.4% growth rate in April-June quarter despite Fed hikes

Associated Press  

WASHINGTON — The U.S. economy surprisingly accelerated to a 2.4% annual growth rate from April through June, showing continued resilience in the face of steadily higher interest rates resulting from the Federal Reserve’s 16-month-long fight to bring down inflation. Consumer spending, the heart of the nation’s economy, was also solid last quarter, though it slowed to a 1.6% annual rate …

From inflation to mortgages: What last week’s data says about the economy
1 year, 5 months ago

From inflation to mortgages: What last week’s data says about the economy

CNN  

New York CNN — Last week would have been an ideal week to go on vacation if you’re an economist or, ahem, an economics reporter. Here’s what else we learned about the economy last week: Inflation is cooling, finally To quote Michael Scott in a favorite scene from “The Office” — “Oh my God! Everybody stay calm.” Inflation is really …

White House cheers ‘Bidenomics’ as inflation rises by only 0.2%
1 year, 5 months ago

White House cheers ‘Bidenomics’ as inflation rises by only 0.2%

The Independent  

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CPI report: US inflation is coming back down to Earth
1 year, 6 months ago

CPI report: US inflation is coming back down to Earth

CNN  

Minneapolis CNN — US inflation is leaving those sky-high days behind: Consumer prices in May rose at the slowest annual pace since March 2021, according to data released Tuesday by the Bureau of Labor Statistics. “They’ve raised rates for 10 consecutive meetings in a row and the increase is the most and fastest pace in decades, so they want to …

US economy grew at weak 1.1% rate in Q1 in sign of slowdown
1 year, 7 months ago

US economy grew at weak 1.1% rate in Q1 in sign of slowdown

Associated Press  

WASHINGTON — The U.S. economy slowed sharply from January through March, decelerating to just a 1.1% annual pace as higher interest rates hammered the housing market and businesses reduced their inventories. The economy’s slowdown reflects the impact of the Federal Reserve’s aggressive drive to tame inflation, with nine interest rate hikes over the past year. “We continue to expect the …

IMF: Prolonged high inflation dims outlook for world economy
1 year, 8 months ago

IMF: Prolonged high inflation dims outlook for world economy

Associated Press  

WASHINGTON — The outlook for the world economy this year has dimmed in the face of chronically high inflation, rising interest rates and uncertainties resulting from the collapse of two big American banks. The fund said the possibility of a “hard landing,” in which rising interest rates weaken growth so much as to cause a recession, has ”risen sharply,” especially …

US economy sending mixed signals: Here’s what it all means
1 year, 9 months ago

US economy sending mixed signals: Here’s what it all means

Associated Press  

WASHINGTON — Maybe it was just too good to be true. Fed Chair Jerome Powell was expected to warn Congress Tuesday that the central bank will have to raise interest rates even higher than it’s previously signaled if inflation keeps running hot. By June 2022, consumer prices were 9.1% higher than they’d been a year earlier — the hottest year-over-year …

US economy sending mixed signals: Here’s what it all means
1 year, 9 months ago

US economy sending mixed signals: Here’s what it all means

Associated Press  

WASHINGTON — Maybe it was just too good to be true. Here’s a closer look at the economy’s vital signs at a perplexing time of high interest rates, still-punishing inflation and surprisingly strong economic gains. By June 2022, consumer prices were 9.1% higher than they’d been a year earlier — the hottest year-over-year inflation in more than four decades. The …

Inflation rocked Biden’s second year as president. There’s more economic trouble on the horizon
1 year, 11 months ago

Inflation rocked Biden’s second year as president. There’s more economic trouble on the horizon

The Independent  

Sign up for the daily Inside Washington email for exclusive US coverage and analysis sent to your inbox Get our free Inside Washington email Get our free Inside Washington email SIGN UP I would like to be emailed about offers, events and updates from The Independent. open image in gallery President Joe Biden listens during an event about infrastructure in …

OECD forecast: High rates, inflation to slow world growth
2 years, 1 month ago

OECD forecast: High rates, inflation to slow world growth

Associated Press  

Hobbled by high interest rates, punishing inflation and Russia’s war against Ukraine, the world economy is expected to eke out only modest growth this year and to expand even more tepidly in 2023. Inflation — largely fueled by high energy prices — “has become broad-based and persistent,” Cormann said, while “real household incomes across many countries have weakened despite support …

World economy to grow 3.1% this year, down from 5.9% : OECD
2 years, 1 month ago

World economy to grow 3.1% this year, down from 5.9% : OECD

Al Jazeera  

While not predicting a global recession, the OECD said it was ‘a very, very challenging outlook’ for this year and next. Hobbled by high interest rates, punishing inflation and Russia’s war against Ukraine, the world economy is expected to eke out only modest growth this year and to expand even more tepidly in 2023. In the OECD’s estimation, the world …

Inflation hits new record high of 10.7% in Europe, slowing economy
2 years, 1 month ago

Inflation hits new record high of 10.7% in Europe, slowing economy

India TV News  

Highlights Natural gas prices skyrocketed in the wake Russia's invasion of Ukraine A survey of professional forecasts showed expectations for inflation next year rose to 5.8 per cent The economy had showed growth of 0.2 per cent in the July-September quarter Inflation hit a new record in the 19 countries that use the euro currency, fuelled by out-of-control prices for …

Even as US economic recovery rebounds, demand stalls
2 years, 1 month ago

Even as US economic recovery rebounds, demand stalls

Al Jazeera  

The US economy snapped two straight quarters of GDP decline to grow 2.6 percent, but domestic demand weakened. US economic growth rebounded strongly in the third quarter amid a shrinking trade deficit, but that overstates the economy’s health as domestic demand was the weakest in two years because of the Federal Reserve’s aggressive interest rate hikes. “With the full effect …

US economy drops at 0.6% annual rate from April through June
2 years, 2 months ago

US economy drops at 0.6% annual rate from April through June

Associated Press  

WASHINGTON — Battered by surging consumer prices and rising interest rates, the U.S. economy shrank at a 0.6% annual rate from April through June, the government announced Thursday, unchanged from its previous second-quarter estimate. But the Fed has raised interest rates five times this year — most recently Sept. 21 — to rein in consumer prices, which were up 8.3% …

Driven by consumers, US inflation grows more persistent
2 years, 3 months ago

Driven by consumers, US inflation grows more persistent

Associated Press  

WASHINGTON — U.S. inflation is showing signs of entering a more stubborn phase that will likely require drastic action by the Federal Reserve, a shift that has panicked financial markets and heightens the risks of a recession. Instead, inflation has now sp On Tuesday, the government said inflation ticked up 0.1% from July to August and 8.3% from a year …

Powell: Higher rates unlikely to cause deep US recession
2 years, 3 months ago

Powell: Higher rates unlikely to cause deep US recession

Associated Press  

WASHINGTON — The last time the Federal Reserve faced inflation as high as it is now, in the early 1980s, it jacked up interest rates to double-digit levels — and in the process caused a deep recession and sharply higher unemployment. “We think we can avoid the very high social costs that Paul Volcker and the Fed had to bring …

Powell says higher US interest rates are likely ‘for some time’
2 years, 3 months ago

Powell says higher US interest rates are likely ‘for some time’

Al Jazeera  

Jerome Powell says the economy is slowing from high 2021 growth rates, and restoring inflation to 2 percent is the top priority. “Restoring price stability will likely require maintaining a restrictive policy stance for some time,” Powell said Friday in remarks prepared for the Kansas City Fed’s annual policy forum in Jackson Hole, Wyoming. “The historical record cautions strongly against …

Fed saw evidence of a slowing economy at its last meeting
2 years, 4 months ago

Fed saw evidence of a slowing economy at its last meeting

Associated Press  

WASHINGTON — Federal Reserve officials saw signs that the U.S. economy was weakening at their last meeting but still called inflation “unacceptably high’’ before raising their benchmark interest rate by a sizable three-quarters of a point in their drive to slow spiking prices. In both June and July, the Fed sought to curb high inflation by raising its key rate …

How high is inflation and what causes it? What to know
2 years, 4 months ago

How high is inflation and what causes it? What to know

Live Mint  

U.S. inflation eased slightly to 8.5% in July, but remained close to a four-decade high despite cooling energy prices. Higher prices in one sector also don’t necessarily lead to general inflation across the economy. The readings, however, show that price increases are widespread and well above policy makers’ targets for annual inflation, which hover around 2% on average. Entrenched inflation …

Is global inflation nearing a peak?
2 years, 4 months ago

Is global inflation nearing a peak?

Al Jazeera  

Consumer prices in the United States eased in July as the price of fuel cooled. After wrongly predicting last year that high inflation would be transitory, most central bankers, including the US Federal Reserve, have stopped trying to put an exact date on when they expect current price growth to peak. US central bank officials see inflation decelerating through the …

Inflation and wage data suggest US prices will keep climbing
2 years, 4 months ago

Inflation and wage data suggest US prices will keep climbing

Associated Press  

WASHINGTON — Inflation surged in June and workers’ average wages accelerated in the spring — signs that Americans won’t likely feel any relief from rising prices anytime soon and that the Federal Reserve will feel compelled to further raise borrowing costs. An inflation gauge closely tracked by the Fed jumped 6.8% in June from a year ago, the government said …

US economy sending mixed signals: Here’s what it all means
54 years, 11 months ago

US economy sending mixed signals: Here’s what it all means

Associated Press  

WASHINGTON — The U.S. economy is caught in an awkward, painful place. Here’s a look at the economic vital signs that are sending frustratingly mixed signals to policymakers, businesses and forecasters: ___ THE OVERALL ECONOMY As measured by the nation’s gross domestic product — the broadest gauge of output — the economy has looked positively sickly so far this year. …

US economy sending mixed signals: Here’s what it all means
2 years, 4 months ago

US economy sending mixed signals: Here’s what it all means

Associated Press  

WASHINGTON — The U.S. economy is caught in an awkward, painful place. Here’s a look at the economic vital signs that are sending frustratingly mixed signals to policymakers, businesses and forecasters: ___ THE OVERALL ECONOMY As measured by the nation’s gross domestic product — the broadest gauge of output — the economy has looked positively sickly so far this year. …

‘Uncharted territory’: Five key takeaways on US inflation
2 years, 5 months ago

‘Uncharted territory’: Five key takeaways on US inflation

Al Jazeera  

What consumers feeling the pain of rising food and fuel prices need to know. “The size of the shocks that have buffeted the economy and the speed and suddenness with which things have changed has put us in a place where it’s very challenging from a monetary policy standpoint.” Following its meeting next week, the Fed is expected to raise …

US inflation surges again in June, raising risks for economy
2 years, 5 months ago

US inflation surges again in June, raising risks for economy

Associated Press  

WASHINGTON — U.S. inflation surged to a new four-decade high in June because of rising prices for gas, food and rent, squeezing household budgets and pressuring the Federal Reserve to raise interest rates aggressively -- trends that raise the risk of a recession. The government’s consumer price index soared 9.1% over the past year, the biggest yearly increase since 1981, …

EXPLAINER: Why US inflation is so high, and when it may ease
2 years, 5 months ago

EXPLAINER: Why US inflation is so high, and when it may ease

Associated Press  

WASHINGTON — Inflation’s relentless surge didn’t merely persist in June. Even if you toss out food and energy prices — which are notoriously volatile and have driven much of the price spike — so-called core inflation soared 5.9% over the past year. The inflation of the 1970s and early 1980s peaked at 14.8% in March 1980 before the Fed exorcized …

US inflation jumps 9.1 percent in June to fresh four-decade high
2 years, 5 months ago

US inflation jumps 9.1 percent in June to fresh four-decade high

Al Jazeera  

The rise in the CPI gives the Federal Reserve – the US central bank – free rein to hike interest rates further later this month. US inflation roared again to a fresh four-decade high last month, likely strengthening the Federal Reserve’s resolve to aggressively raise interest rates that risks upending the economic expansion. The consumer price index rose 9.1% from …

U.S. inflation reached a new 40-year high of 9.1% in June
2 years, 5 months ago

U.S. inflation reached a new 40-year high of 9.1% in June

LA Times  

U.S. inflation surged to a new four-decade high in June because of rising prices for gas, food and rent, squeezing household budgets and pressuring the Federal Reserve to raise interest rates aggressively — trends that raise the risk of a recession. The government’s consumer price index soared 9.1% in June from June 2021, the biggest year-over-year increase since 1981, with …

Why is inflation so high, and when will it ease?
2 years, 5 months ago

Why is inflation so high, and when will it ease?

LA Times  

Inflation’s relentless surge didn’t merely persist last month. Even if you toss out food and energy prices — which are notoriously volatile and have driven much of the price surge — so-called core inflation soared 5.9% over the last year. The inflation of the 1970s and early 1980s peaked at 14.8% in March 1980 before the Fed exorcized high prices …

Column: You may not have noticed yet, but inflation has started to come down
2 years, 5 months ago

Column: You may not have noticed yet, but inflation has started to come down

LA Times  

For fans of code-breaking, Thursday morning’s Wall Street Journal home page provided plenty of material to perplex and entertain. That hasn’t been too visible in the most recent data releases from the Bureau of Labor Statistics but may become evident with the agency’s next report on the consumer price index, due July 13. It’s proper to stipulate that even as …

Key inflation gauge tracked by the Fed remains a high 6.3%
2 years, 5 months ago

Key inflation gauge tracked by the Fed remains a high 6.3%

Associated Press  

WASHINGTON — A measure of inflation that is closely tracked by the Federal Reserve jumped 6.3% in May from a year earlier, unchanged from its level in April. Thursday’s report from the Commerce Department provided the latest evidence that painfully high inflation is pressuring American households and inflicting particular harm on low-income families and people of color. The Fed tends …

US inflation at new 40-year high as price increases spread
2 years, 6 months ago

US inflation at new 40-year high as price increases spread

Associated Press  

WASHINGTON — The prices of gas, food and most other goods and services jumped in May, raising inflation to a new four-decade high and giving American households no respite from rising costs. Consumer prices surged 8.6% last month from a year earlier, faster than April’s year-over-year increase of 8.3%, the Labor Department said Friday. Friday’s report underscored fears that inflation …

Treasury Secretary Yellen expects inflation to ‘remain high’
2 years, 6 months ago

Treasury Secretary Yellen expects inflation to ‘remain high’

Associated Press  

WASHINGTON — Treasury Secretary Janet Yellen acknowledged Tuesday that she and Federal Reserve Chair Jerome Powell “could have used a better word” than “transitory” when describing the expected run of inflation in the U.S. economy. “I do expect inflation to remain high although I very much hope that it will be coming down now,” Yellen told the Senate Finance Committee …

Congressional Budget Office says inflation to last into 2023
2 years, 6 months ago

Congressional Budget Office says inflation to last into 2023

Associated Press  

WASHINGTON — The Congressional Budget Office released an economic outlook Wednesday saying high inflation will persist into next year, likely causing the federal government to pay higher interest rates on its debt. With Biden’s $3.5 trillion economic and social spending bill, known as “Build Back Better,” now dead in a split Senate, Democrats face pressure to pass legislation ahead of …

High Inflation Hits Pockets of Poor; Spending Taking A Toll; Will Inflation Rise Even More?
2 years, 7 months ago

High Inflation Hits Pockets of Poor; Spending Taking A Toll; Will Inflation Rise Even More?

News 18  

As retail inflation is hovering at multi-year high levels, it is hitting the pocket of a common man, whose budget and spending are getting affected adversely. Retail Inflation At 8-Year High The Consumer Price Index -based inflation, which the RBI takes as a reference point while deciding on the monetary policy, in April 2022 soared to an eight-year high of …

40-year-high US inflation self-inflicted
2 years, 7 months ago

40-year-high US inflation self-inflicted

China Daily  

A man shops at a supermarket in Foster City in California, the United States, April 12, 2022. Food prices climbed to an all-time high in March, up nearly 20 percent year-on-year, and remain high in what UN Secretary-General Antonio Guterres has called the "hurricane of hunger and a meltdown of the global food system", while crude oil price reached a …

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