WASHINGTON — also said that consumer spending fell 0.6% in December, with purchases of cars, electronics, and clothes declining. Higher prices might have discouraged some shoppers, along with a wave of omicron cases that kept many Americans from traveling, eating out or visiting entertainment venues.Stubbornly high inflation has hammered household budgets, wiped out last year’s healthy wage gains and posed a severe political challenge to President Joe Biden and Democrats in Congress.
Still, economists say steady job gains and increased savings should eventually drive more spending later this year, especially if the omicron wave keeps fading. Excluding the volatile food and energy categories, so-called core prices rose 4.9% last year, the biggest increase since 1983. That was up from a 4.7% year-over-year rise in core prices in November.
Besides raising interest rates, Chair Jerome Powell said Wednesday that the Fed will move to shrink its huge $8.9 trillion of bond holdings this year, another step that will likely tighten credit, slow spending and potentially weaken the economy. Powell has said that a sharp rise in pay and benefits, reported in November, was a key reason why the Fed began shifting its policy toward higher interest rates. While rising wages are good for employees, they can also elevate inflation if they aren’t offset by efficiency gains.
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A key inflation gauge rose 5.8% in 2021, most in 39 yearsWASHINGTON (AP) — A measure of prices that is closely tracked by the Federal Reserve rose 5.8% last year, the sharpest increase since 1982, as brisk consumer spending collided with snarled supply chains to raise the costs of food, furniture, appliances and other goods. VimesBootsIndex This headline reads like a lie. I get that it's anecdotal, but this doesn't align with the past 2yrs for me. Less demand but more spending because the economy was all but shutdown so businesses raised prices. Exuberantly. This is our life now.
Source: AP - 🏆 728. / 51 Read more »
10-year Treasury yield holds above 1.82% ahead of key inflation gaugeThe 10-year U.S. Treasury yield held above 1.82% on Friday morning, ahead of the release of a key inflation gauge.
Source: CNBC - 🏆 12. / 72 Read more »
Key Fed inflation gauge rises 4.9% from a year ago, fastest gain since 1983🇿🇦 I’ve received R100.000.00 within 7days of crypto trading with the help of Mr Hendricksnino12 he’s reliable and trust, ⚡𝐍𝐨 𝐡𝐢𝐝𝐝𝐞𝐧 𝐜𝐡𝐚𝐫𝐠𝐞𝐬 ⚡𝐍𝐨 𝐰𝐢𝐭𝐡𝐝𝐫𝐚𝐰𝐚𝐥 𝐩𝐞𝐧𝐝𝐢𝐧𝐠 Contact him now by clicking on his name below 👇🏻 Twitter Hendricksnino12 By the way, storing money in BTC or USDT can be a great tool to protect against inflation What caused more then the supply chain M issues.. It was all that unemployment stimulus. Got people used to not working. Add that to the rise in wages all those costs being passed down.
Source: CNBC - 🏆 12. / 72 Read more »
Key inflation gauge rose 5.8% in December, fastest since 1982Consumer prices rose 5.8% in December compared to one year earlier, according to the Commerce Department’s Personal Consumption Expenditures index.
Source: nypost - 🏆 91. / 67 Read more »
A key inflation measure rose at the fastest pace in 40 yearsA key measure of inflation rose 5.8% between December 2020 and December 2021, the Bureau of Economic Analysis reported Friday Key indicators also very elevated for a recession. Coming this summer 2022 LetsGoBrandon ... Inflation touch only the poor and middle class.. Rich people aren't touched by inflation... For a wealthy, if gas, oil increase of 2 or $3,it's nothing for them. But huge for poor and Middle class, if the gallon of milk is $8 instead 4, it's nothing for them huge for poor 👍
Source: CNN - 🏆 4. / 95 Read more »