Analysis: Why is inflation so high, and when will it ease?
3 years ago

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

LA Times  

Customers shop at a Best Buy store in Overland Park, Kan., on Black Friday. Economists at Wells Fargo have joked grimly that the Labor Department’s CPI — the consumer price index — should stand for “consumer pain index.” Unfortunately for consumers, especially lower-wage households, it’s all coinciding with their higher spending needs right before the holiday season. “A sizable chunk of the inflation we’re seeing is the inevitable result of coming out of the pandemic,” said Jason Furman, an economic advisor in the Obama White House now at the Harvard Kennedy School. “They poured kerosene on the fire.” A flood of government spending — including Biden’s $1.9-trillion coronavirus relief package, with its $1,400 checks to most households in March — overstimulated the economy, Furman said. “We’ve been fighting nonexistent inflation since the 1990s,” said Diane Swonk, chief economist at the accounting and consulting firm Grant Thornton, “and now we’re talking about fighting an inflation that is real.”

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History of this topic

Where inflation accelerated in November – and where it eased
6 days, 4 hours ago

Where inflation accelerated in November – and where it eased

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Sign up to our free breaking news emails SIGN UP I would like to be emailed about offers, events and updates from The Independent. Some products swung the other way last month, from …

Retail inflation slows slightly at 5.48%
1 week, 5 days ago

Retail inflation slows slightly at 5.48%

Hindustan Times  

Retail inflation rose to 5.48% last month, a slower pace of increase compared to 6.21% in October, data from the Ministry of Statistics and Programme Implementation showed on Thursday. Despite the slowing pace of growth in prices, the Consumer Price Index-based rate of retail inflation stayed above the Reserve Bank of India’s 4% tolerance level, with two percentage points of …

US wholesale inflation surged higher in November
Trending News
1 week, 5 days ago

US wholesale inflation surged higher in November

CNN  

CNN — US wholesale inflation shot higher last month, an unwelcome sign that some prices could be heating up before they come down the pike to consumers. A closely watched gauge of underlying wholesale inflation grew more modestly and a chunk of November’s increase could be attributed to a spike in egg prices as a deadly bird flu ripples through …

US inflation rose for second straight month: What are the challenges for Trump now?
1 week, 6 days ago

US inflation rose for second straight month: What are the challenges for Trump now?

Firstpost  

President-elect Donald Trump has made tackling inflation and reducing the cost of living a cornerstone of his campaign. However, the recent uptick in inflation suggests the road ahead may be more complex than anticipated Inflation in the United States ticked up for the second consecutive month in November. The consumer price index, a key measure of inflation, rose to 2.7 …

Inflation heated up last month as consumer prices rose 2.7%, underscoring the slog ahead
1 week, 6 days ago

Inflation heated up last month as consumer prices rose 2.7%, underscoring the slog ahead

CNN  

CNN — Inflation heated back up again in November, but it likely wasn’t bad enough to keep the Federal Reserve from cutting rates next week. “We have some PTSD around egg prices from the pandemic and certainly lingering avian flu outbreaks; but those prices being up almost 40% year over year certainly is another thing people will look at in …

The economy is still inflated
2 weeks, 6 days ago

The economy is still inflated

Live Mint  

The Federal Reserve has slowed inflation, but many Americans continue to pay a high price for the cumulative inflationary consequences of excessive monetary and fiscal stimulus. Joe Biden’s $1.9 trillion American Rescue Plan was close to being enacted, but we never imagined that the Fed would maintain zero interest rates and continue its massive purchases of assets until March 2022, …

US consumer price increases accelerated last month with inflation pressures resilient
3 weeks, 6 days ago

US consumer price increases accelerated last month with inflation pressures resilient

Associated Press  

WASHINGTON — Consumer price increases accelerated last month, the latest sign that inflation’s steady decline over the past two years has stalled in recent months. According to the Federal Reserve’s preferred inflation gauge, consumer prices rose 2.3% in October from a year earlier, the Commerce Department said Wednesday. Yet excluding the volatile food and energy categories, so-called “core” prices also …

U.S. inflation rose slightly last month after 2 years of steady cooling but remained low
1 month, 1 week ago

U.S. inflation rose slightly last month after 2 years of steady cooling but remained low

LA Times  

Inflation in the United States ticked up in October, driven by costlier rents, used cars and air fares, a sign that price increases might be leveling off after having slowed in September to their lowest pace since 2021. Consumer inflation, which peaked at 9.1% in 2022, has since fallen steadily, though overall prices are still about 20% higher than they …

Fed up with high prices? Here's where things stand with inflation
1 month, 1 week ago

Fed up with high prices? Here's where things stand with inflation

NPR  

Fed up with high prices? Here's where things stand with inflation toggle caption Justin Sullivan/Getty Images By the numbers, inflation in America continues in the same direction: Easing largely — but still sticky. "We both make decent wages, but with the way that inflation has increased, it's like our dollar just doesn't go as far," says Spangler, who helps manage …

Inflation hit a bump in October after slowing for six straight months
1 month, 1 week ago

Inflation hit a bump in October after slowing for six straight months

CNN  

CNN — The annual rate of inflation moved higher last month for the first time since March, as expected — but economists say the underlying trend remains favorable for another round of interest rate cuts. Consumer prices rose 0.2% last month and were up 2.6% from the year before, according to the latest Consumer Price Index data released Wednesday by …

Consumer inflation at 14-month high of 6.2%
Trending News
1 month, 1 week ago

Consumer inflation at 14-month high of 6.2%

Hindustan Times  

Retail inflation came in at 6.2% in October, the highest in 14 months, and outside the upper band of the Reserve Bank of India’s tolerance limit, primarily on account of higher food prices with potatoes, onions and tomatoes, stape vegetables all, driving the charge. The higher-than-expected number means that RBI’s Monetary Policy Committee is unlikely to cut rates in its …

India’s 14-month high retail inflation fades hope of December rate cut
Trending News
1 month, 1 week ago

India’s 14-month high retail inflation fades hope of December rate cut

Live Mint  

New Delhi: India’s retail inflation accelerated in October to its highest in over a year largely due to heated food prices, tempering expectations of a rate cut when the central bank’s monetary policy panel meets early next month. India’s retail inflation also breached the Reserve Bank of India’s medium-term target of 2-6% for the first time in over a year—which, …

Column: American economists and consumers got inflation wrong during its recent surge. They still do
2 months, 3 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 …

Inflation has slowed, but the economy remains big issue for voters in picking a president
3 months, 1 week ago

Inflation has slowed, but the economy remains big issue for voters in picking a president

Raw Story  

Inflation hit a three-year low last month, just as the presidential election is heating up. Trump, the former president and Republican nominee, blamed the Biden administration for high prices early on Tuesday’s debate in Philadelphia, falsely claiming the post-pandemic wave of inflation is the worst ever. Democratic nominee andVice President Harris responded to Tuesday’s question about the economy by touting …

US inflation reaches a 3-year low as Federal Reserve prepares to cut interest rates
3 months, 1 week ago

US inflation reaches a 3-year low as Federal Reserve prepares to cut interest rates

Politico  

For months, cooling inflation has provided gradual relief to America’s consumers, who were stung by the price surges that erupted three years ago, particularly for food, gas, rent and other necessities. A key reason for last month’s drop in overall inflation was the third decline in gas prices in the past four months: Average gas prices fell 0.6% from July …

US inflation cooled in May in a sign that price pressures may be easing
6 months, 1 week ago

US inflation cooled in May in a sign that price pressures may be easing

Associated Press  

WASHINGTON — Inflation in the United States eased in May for a second straight month, a hopeful sign that an acceleration of prices that occurred early this year may have passed. Consumer prices excluding volatile food and energy costs — the closely watched “core” index — rose 0.2% from April to May, the government said Wednesday. Fed officials, who will …

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% …

High inflation is pinching, 'consumers more discriminating with every dollar', McDonald's says
7 months, 3 weeks ago

High inflation is pinching, 'consumers more discriminating with every dollar', McDonald's says

Hindustan Times  

Inflation remains a pressing concern for some of America's most prominent corporations, with rising prices impacting consumers and bottom lines. McDonald’s CEO, Chris Kempczinski, highlighted the ongoing challenges faced by consumers during the company's recent earnings call, noting that elevated prices are prompting individuals to be more discerning with their spending. Other firms, including 3M and Newell Brands, have also …

Fed’s preferred inflation gauge shows price pressures stayed elevated last month
7 months, 4 weeks ago

Fed’s preferred inflation gauge shows price pressures stayed elevated last month

Associated Press  

WASHINGTON — A measure of inflation closely tracked by the Federal Reserve remained uncomfortably high in March, likely reinforcing the Fed’s reluctance to cut interest rates anytime soon and underscoring a burden for President Joe Biden’s re-election bid. Friday’s inflation data showed that excluding volatile food and energy costs, “core” prices rose by an elevated 0.3% from February to March, …

US growth slowed sharply last quarter to 1.6% pace, reflecting an economy pressured by high rates
7 months, 4 weeks 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 …

The annual rate of inflation remained steady in February, at 3.4 per cent
8 months, 3 weeks ago

The annual rate of inflation remained steady in February, at 3.4 per cent

ABC  

The annual rate of inflation remained steady in February, at 3.4 per cent. "Today's monthly CPI figures — with inflation in February remaining steady at 3.4 per cent — reaffirms KPMG's view that the inflation surge is now over and, despite the RBA's cautious 'nothing's off the table' message, the next interest rate move will be down – the question …

US inflation up again in February in latest sign that price pressures remain elevated
9 months, 1 week ago

US inflation up again in February in latest sign that price pressures remain elevated

Associated Press  

WASHINGTON — Consumer prices in the United States picked up last month, a sign that inflation remains a persistent challenge for the Federal Reserve and for President Joe Biden’s re-election campaign, both of which are counting on a steady easing of price pressures this year. Prices rose 0.4% from January to February, higher than the previous month’s figure of 0.3%, …

American consumers are pushing back against high inflation — and they are winning
9 months, 4 weeks ago

American consumers are pushing back against high inflation — and they are winning

The Hindu  

Inflation has changed the way many Americans shop. In a video released on Super Bowl Sunday, Mr. Biden denounced shrinkflation as a “rip-off.” Consumer pushback against high prices suggests to many economists that inflation should further ease. “That was the fear — that everybody would tolerate higher prices,” said Gregory Daco, chief economist at EY, who notes that it hasn't …

Consumer sentiment edges higher as economic growth accelerates and inflation fades
10 months, 1 week ago

Consumer sentiment edges higher as economic growth accelerates and inflation fades

Associated Press  

WASHINGTON — A measure of consumer sentiment ticked higher this month, after soaring in December and January, underscoring that Americans are starting to feel better about the economy after several years of gloom. Still, consumer sentiment remains 6% below its long-run average after the worst spike in inflation in four decades pushed up the cost of groceries, rent, gas, and …

US consumer inflation falls to 3.1pc in January, but less than expected
10 months, 1 week ago

US consumer inflation falls to 3.1pc in January, but less than expected

Hindustan Times  

US consumer inflation cooled in January but at a slower rate than expected, resisting President Joe Biden's efforts to soothe families' cost of living concerns in an election year. U.S. President Joe Biden The closely watched Consumer Price Index rose 3.1 percent from a year ago last month, down from 3.4 percent in December, the Department of Labor said on …

Inflation slows but remains elevated, a sign price pressures are easing only gradually
10 months, 1 week ago

Inflation slows but remains elevated, a sign price pressures are easing only gradually

LA Times  

U.S. consumer prices rose more than expected in January, further reducing the chances that Federal Reserve officials will start lowering interest rates soon. At his most recent news conference, Fed Chair Jerome H. Powell singled out persistently high services prices as a concern and indicated the central bank’s policymakers would like to see services inflation ease further before starting to …

Inflation slowed further in December as an economic ‘soft landing’ moves into sharper focus
10 months, 4 weeks ago

Inflation slowed further in December as an economic ‘soft landing’ moves into sharper focus

Associated Press  

WASHINGTON — The Federal Reserve’s preferred inflation gauge cooled further last month even as the economy kept growing briskly, a trend sure to be welcomed at the White House as President Joe Biden seeks re-election in a race that could pivot on his economic stewardship. Friday’s government report showed that prices rose just 0.2% from November to December, a pace …

Which everyday items have seen a rise in inflation – and where has it eased?
11 months, 1 week ago

Which everyday items have seen a rise in inflation – and where has it eased?

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Sign up to our free breaking news emails SIGN UP I would like to be emailed about offers, events and updates from The Independent. Average prices for cigarettes increased by 15.7% in the …

The Federal Reserve could do what was thought impossible: Defeat inflation without a steep recession
1 year ago

The Federal Reserve could do what was thought impossible: Defeat inflation without a steep recession

Associated Press  

WASHINGTON — It was the most painful inflation Americans had experienced since 1981, when “The Dukes of Hazzard” and “The Jeffersons” were topping the TV charts. Confidence is growing among Federal Reserve officials and many economists that high interest rates and healed supply chains will soon defeat inflation. With inflation cooling, Powell said the 19 officials on the Fed’s policy …

Acceleration foretold: On volatile food prices
1 year ago

Acceleration foretold: On volatile food prices

The Hindu  

November’s resurgence in headline retail inflation, while clearly not unexpected after the RBI just last week predicted a likely ‘uptick’, is a stark reminder of the risks volatile food prices pose. While the National Statistical Office’s provisional reading of headline inflation shows the Consumer Price Index rose by 5.55% year-on-year to a three-month high, from October’s 4.87%, food price gains …

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 …

Just what IS keeping inflation so high? The everyday items that continue to go up in price revealed - as annual rate of inflation holds steady at 3.7%
1 year, 2 months ago

Just what IS keeping inflation so high? The everyday items that continue to go up in price revealed - as annual rate of inflation holds steady at 3.7%

Daily Mail  

Figures are unlikely to significantly impact Fed interest rates, analysts say Annual inflation held steady in September, with prices increasing 3.7 percent on the year prior, thanks mainly to the cost of food and energy. Annual inflation held steady in September, with prices increasing 3.7 percent on the year prior, thanks mainly to the cost of food and energy. Data …

A surge foretold: On inflation data
1 year, 4 months ago

A surge foretold: On inflation data

The Hindu  

The latest NSO data, showing retail inflation accelerating to a 15-month high, comes less than a week after the Reserve Bank of India left interest rates unchanged even as it warned of “a substantial increase in headline inflation” in the near term. The primary driver of this surge was the food price component, with the Consumer Food Price Index-based inflation …

Retail inflation surges to 7.44% in July
1 year, 4 months ago

Retail inflation surges to 7.44% in July

The Hindu  

Retail inflation resurged in July to hit 7.44% from 4.87% in June, with consumers facing a sharp 11.5% spike in food prices. Wholesale prices Wholesale prices remained in deflationary mode for the fourth month in a row in July, but prices of food and primary articles spiked by over 7.5%, narrowing the overall price dip sharply to -1.36% from the …

Inflation ticks up modestly to 3.2% but core products continue to cool - sparking speculation the Fed could pause relentless interest rate hikes in September
1 year, 4 months ago

Inflation ticks up modestly to 3.2% but core products continue to cool - sparking speculation the Fed could pause relentless interest rate hikes in September

Daily Mail  

Inflation in the US has ticked up to a 3.2 percent annual rate - rising slightly in July from June's 3 percent annual increase. Inflation in the US has ticked up to a 3.2 percent annual rate - rising slightly in July from June's 3 percent annual increase The 3.2 percent annual inflation rate is a sharp decrease from the …

From eggs to electronics to used cars, consumer inflation eased its grip on US households in July
1 year, 4 months ago

From eggs to electronics to used cars, consumer inflation eased its grip on US households in July

Associated Press  

WASHINGTON — Inflation in the United States edged up in July after 12 straight months of declines. But excluding volatile food and energy costs, so-called core inflation matched the smallest monthly rise in nearly two years, a sign that the Federal Reserve’s interest rate hikes have continued to slow price increases. It was like $90.’’ Prices, he said, are high …

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 …

Food prices drive retail inflation to 3-month high of 4.81%
1 year, 5 months ago

Food prices drive retail inflation to 3-month high of 4.81%

Hindustan Times  

Consumers will feel the pain of high food at least until September, analysts said on Wednesday, as the knock-on effects of last year’s lower output of key staples and torrential rains this month hammered household budgets. Read here: Retail inflation in June reaches a 3-month high of 4.81% on rising food prices Food inflation, as measured by the consumer food …

Why inflation is worse than anyone expected – and what comes next
1 year, 6 months ago

Why inflation is worse than anyone expected – and what comes next

The Telegraph  

The Bank of England’s Governor has warned about this. Big changes include airfares - up by almost one-third, though this can be affected by the timing of the Easter holidays - live events, which may have been affected by shows by big stars including Beyonce, and second hand cars, which are less exciting than pop sensations but typically more important …

Inflation measure closely tracked by US Fed rose in April
1 year, 6 months ago

Inflation measure closely tracked by US Fed rose in April

Al Jazeera  

A key index of United States prices ticked higher in April, and consumer spending rebounded, a sign that inflationary pressures in the economy remain high. The index, which is called personal consumption expenditures price index and is closely monitored by the Federal Reserve, showed that prices rose 0.4 percent from March to April. But a vocal group among the Fed’s …

Inflation falls to lowest level in over a year - but food prices remain high
1 year, 7 months ago

Inflation falls to lowest level in over a year - but food prices remain high

The Independent  

Get the free Morning Headlines email for news from our reporters across the world Sign up to our free Morning Headlines email Sign up to our free Morning Headlines email SIGN UP I would like to be emailed about offers, events and updates from The Independent. Read our privacy policy Inflation has fallen back to its lowest level in over …

Why does low unemployment no longer lift inflation?
1 year, 7 months ago

Why does low unemployment no longer lift inflation?

Hindustan Times  

EVERY NIGHT at about 10pm the lights of the prisoner-of-war camp in Indonesia would mysteriously dim, to the puzzlement of the Japanese guards. His fame rests instead on his “quick and dirty” study, published in 1958, documenting a striking, decades-long relationship between British wage inflation and unemployment: the one tended to be high when the other was low. Economists decided …

Economists are reconsidering how much corporate profits drive inflation
1 year, 7 months ago

Economists are reconsidering how much corporate profits drive inflation

NPR  

Economists are reconsidering how much corporate profits drive inflation In the past, corporate profit growth accounted for maybe a third of inflation. Now, you may remember a lot of economists last year saying that corporations or corporate greed was not driving inflation, but corporate profits could be a driver of inflation. GONZALEZ: Andrew at the not-quite-fancy Kansas City Fed wanted …

Inflation stayed high last month, compounding the challenges facing the U.S. economy
1 year, 7 months ago

Inflation stayed high last month, compounding the challenges facing the U.S. economy

NPR  

Inflation stayed high last month, compounding the challenges facing the U.S. economy Enlarge this image toggle caption Justin Sullivan/Getty Images Justin Sullivan/Getty Images Inflation remained stubbornly high last month after more than a year of rising interest rates. "My feeling is that there's a gradual slowdown here, but March seemed a little too good to be true," said Omair Sharif, …

Inflation is easing but prices for goods we have to buy are still astronomical
1 year, 7 months ago

Inflation is easing but prices for goods we have to buy are still astronomical

ABC  

On the surface, it's good news. Rents keep rising Rental prices have just recorded their largest annual rise since 2010, reflecting strong demand amid low vacancy rates across the country. It says the annual rise in gas prices of 26.2 per cent is the largest on record. It says higher wholesale electricity prices have also impacted household electricity bills, with …

Cheaper gas and food provide some relief from US inflation
1 year, 8 months ago

Cheaper gas and food provide some relief from US inflation

Associated Press  

WASHINGTON — U.S. consumer inflation eased in March, with less expensive gas and food providing some relief to households that have struggled under the weight of surging prices. Measured from a year earlier, prices were up just 5% in March, down sharply from February’s 6% year-over-year increase and the mildest such rise in nearly two years. As goods prices have …

US inflation eases to lowest level in nearly two years
1 year, 8 months ago

US inflation eases to lowest level in nearly two years

Firstpost  

Washington: The consumers have a sigh of relief as U.S. consumer inflation eased in March. Measured from a year earlier, prices were up just 5% in March, down sharply from February’s 6% year-over-year increase and the smallest rise in nearly two years. Price increases in the economy’s vast service sector — ranging from rents and restaurant meals to haircuts and …

Inflation eased in March but prices are still climbing too fast for comfort
1 year, 8 months ago

Inflation eased in March but prices are still climbing too fast for comfort

NPR  

Inflation eased in March but prices are still climbing too fast for comfort New consumer prices data for March show that inflation has fallen from a four-decade high last summer, but prices are still climbing faster than the Federal Reserve would like. But, you know, prices are still climbing about 2 1/2 times as fast as the Federal Reserve would …

Inflation cooled in February, yet remains stubbornly high
1 year, 9 months ago

Inflation cooled in February, yet remains stubbornly high

CBS News  

Credit card debt soars as companies try to lure more customers with perks Inflation around the U.S. rose at an annual rate of 6% rate in February, cooling from the prior month yet posing a dilemma for the Federal Reserve as it copes with the double whammy of stubbornly high inflation and instability in the banking sector. The inflation data …

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 …

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