Key inflation gauge rises 3.6% from a year ago to tie biggest jump since the early 1990s
Source: CNBC
An inflation measure the Federal Reserve uses to set policy rose 3.6% in July from a year ago, meeting Wall Street expectations but also tying the highest level in about 30 years.
The core personal consumption expenditures price index, which the Fed sees as the broadest measure of inflation, was unchanged from June, which was revised up one-tenth of a percentage point, the Commerce Department reported Friday. That 3.6% reading equaled the Dow Jones estimate and appeared to be the highest level since May 1991.
Including volatile food and energy prices, the index rose 4.2% year over year, up from 4% in June and the highest reading since January 1991.
Personal income also surged for the month, jumping 1.1%, well ahead of the 0.3% Dow Jones estimate.
...
Atlanta Fed President Raphael Bostic told CNBC on Friday that business contacts in his region have told him they see inflation persisting beyond the near-term time frame.
We dont want and we really cant afford to have inflation that is too high, because people at the lower end of the spectrum are going to be hurt pretty significantly, he told CNBCs Steve Liesman during a Squawk Box interview.
Read more: https://www.cnbc.com/2021/08/27/key-inflation-gauge-rises-3point6percent-from-a-year-ago-to-tie-biggest-jump-since-the-early-1990s.html
NullTuples
(6,017 posts)Supply chains are a mess. Everything from potatoes to computers to automobiles is affected.
It kinda weirds me out how some economists & pundits are treating this the same as normal inflation.
Johnny2X2X
(19,015 posts)It makes head lines now, but the economists are also saying this is temporary and things will even out in a few months. Inflation will not be a story by Christmas.
kirby
(4,441 posts)Supply chain / especially shipping ports are a disaster and is not expected to recover until next Spring.
There is a shortage of shipping containers and Covid lockdowns at ports so nobody to work.
cinematicdiversions
(1,969 posts)I think we may have inflation for a few years more.
NullTuples
(6,017 posts)Spanish Flu took three years to taper off.
Much of the world is not vaccinated - on the order of 98%.
We still have more than enough population pockets worldwide that COVID has not burned through.
Any one of which, when it does get decimated, will very likely create new variants.
And one of those may well render current vaccines nearly useless.
So, my guess is we're looking at EOY '22 or EOY '23 at the soonest.
roamer65
(36,745 posts)I think the virus will be tamped down by then.
NullTuples
(6,017 posts)Predictability breeds stability.
I don't understand why public messaging hasn't been more clear about this.
Last year it made sense; instability & chaos are wonderful for creating opportunities to grift.
It's not last year anymore.
roamer65
(36,745 posts)We need some debt destruction anyway.
GB_RN
(2,346 posts)Mr.Bill
(24,263 posts)Hasn't paid for their own groceries lately. Or bought gas. Or paid a utility bill. Or (fill in the blank with anything regarding spending money)