Economy, Inflation

3 reasons inflation will still cool down from decade highs

3 reasons why inflation will still cool down — even through it's surged for longer than expected

10/28/2021 5:59:00 PM

3 reasons why inflation will still cool down — even through it's surged for longer than expected

Insider tells the global tech, finance, markets, media, healthcare, and strategy stories you want to know.

Younger Americans aren't filling the gap. Population growth slowed tothe lowest rate since the Great Depressionin 2020, the Census Bureau said in April. Much of the slowdown was powered by weaker family formation among young adults. Millennials have been slammed by two unprecedented recessions in the span of 15 years, leaving many with scarred finances. And growth is unlikely to rebound. The Brookings Institute forecasted in June that fertility rates will likely lag replacement rates for the foreseeable future,

Death toll rises to 13 in Indonesia volcano eruption | AP News Jesse Watters highlights problems Biden 'is not doing a damn thing about' At least 160 San Diego police officers could face termination over vaccination mandate

Insider's Hillary Hoffower reported.A sustained surge in inflation would require consistently strong demand. With population growth expected to slow further, Americans' spending is more likely to stall than soar.Rich Americans are hoarding cash

Even if the population grew faster, spending probably wouldn't change much. Research shows low-income Americans have the highest marginal propensity to consume, meaning they spend more when they get a raise or a bonus. Conversely, the wealthiest Americans spend less of their bonuses and save much of the cash instead.

That gap stands to keep inflation anchored. The richest 5% of Americansheld more than two-thirds of the country's total wealthat the end of 2016, according to a paper published by the National Bureau of Economic Research. Meanwhile, analysis from Pew Research shows middle-income and low-income Americans holding smaller and smaller shares of US wealth through 2016.

Should the trend continue, more of the country's wealth will be saved by the richest Americans. That stands to dampen spending by the rest of the population and keep prices from soaring higher.The global supply-chain crisis is on the declineMuch of the higher inflation seen today comes from a worldwide shipping mess. A global energy crunch, factory blackouts, shipping delays, and port bottlenecks have strangled supply chains. At the same time,

Americans' spending has kept climbingas the country reopens.Demand is booming, but companies are struggling to shore up supply. That's fueled price hikes throughout the economy.Yet experts already think the worst is over. There are signs the US is"

past the peak pinch," and the supply-chain tangle will see"significant improvement" by the second half of 2022, Jefferies economists led by Aneta Markowska said earlier in October.The White House called on companies including FedEx, Walmart, and UPS earlier in October to work 24/7 to ship orders and work through massive backlogs. Separately, the Port of Los Angeles announced on October 13 it would work around the clock to process container ships. More recently the ports of Los Angeles and Long Beach said they would

Hulu Pulls Astroworld Documentary to ‘Avoid Confusion’ How the Pandemic Influenced Country Christmas Music, and the Artists Behind It Pharrell Williams, Haim Visit Chanel Labyrinth at Art Basel Miami Beach

start fining shipping companies $100 each dayfor every container left on the docks.The cleanup, then, is underway. As shipping lines heal, supply is expected to bounce back and better match demand. The shortages that have powered inflation higher throughout 2021 are quickly fading away.

Sign up for notifications from Insider! Stay up to date with what you want to know.Subscribe to push notificationsAn icon in the shape of a lightning bolt. Read more: Business Insider »

Prosecutor after charging parents in Oxford shooting: Owning gun 'comes with responsibility'

Oakland County prosecutor Karen McDonald discusses with Nicolle Wallace why she decided to charge the parents in the Oxford school shooting and the next steps of the investigation

Supply chain issues, UBI masked as unemployment, increase in the money supply with proposals to spend even more. Yeah I don’t think inflation is going to be transitory’ It cycles 通胀仍将降温的3个原因——即使通胀飙升的时间比预期的要长

Analysis | Which NFL offseason moves have paid off so far? A look at the best and worst.The Bengals and Rams are among the teams that deserve high marks, while the Bears and Dolphins have reason for regret. Obviously, keep it pumping but it wasn't an easy task to learning the routes on trading . Cryptyflora made it more easier to understand and have made over 5.3btc in space of 7 weeks interval. Follow her Cryptyflora There will be no excuses in the Lord's long day, the works of a lifetime will be before God and Jesus Christ.

Kat Von D Is Closing Her L.A. Tattoo Parlor and Moving to IndianaThe tattoo artist is shutting down her famous tattoo parlor, High Voltage, and moving to rural Indiana with her husband. thekatvond Bless her heart she's getting the kid out of LA! Right on KVD thekatvond Indiana?

European Central Bank expected to hold steady as economy slows and inflation soarsSlowing growth and higher inflation could render October's ECB meeting more eventful than originally anticipated. good Money start to go to Europe 🤩🤩🤩 PureDogecoin Hyperinflation

Why Do Narcissistic Employees Get Promoted Fast?2 reasons why people who are high in narcissism rise quickly to the top at work—and what the rest of us can learn from them, according to ArashEmamzadeh

Janette Manrara returns to Strictly pro mode for special reasonJanette Manrara shared a video of herself practising her dancing skills for a lovely reason

Nintendo 64 Games Arrive on Switch, and Almost Nobody Seems Happy about ItYou can now play classic Nintendo 64 games on the Switch with a Nintendo Switch Online + Expansion Pack subscription, and here's why many fans are upset about that. nintendo’s biggest crime was leaving off dk64