EXPLAINER: Why US inflation is so high, and when it may ease
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. Back in December 2020, the Fed’s policymakers had forecast that consumer inflation would stay below their 2% annual target and end 2021 at around 1.8%. For months, Fed Chair Jerome Powell and some others characterized higher consumer prices as merely “transitory” — the result, mainly, of shipping delays and temporary shortages of supplies and workers as the economy rebounded from the pandemic recession much faster than anyone had anticipated. Elevated consumer price inflation could endure as long as companies struggle to keep up with consumers’ demand for goods and services. The Labor Department says that after accounting for higher consumer prices, hourly earnings for private-sector employees fell 2.7% last month from a year earlier, the 12th straight such drop.
CPI report: US stocks surge after latest inflation report shows progress on price hikes
CPI report: US stocks surge after latest inflation report shows progress on price hikes
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