Inflation Gauge Used by Federal Reserve Hits Highest Level Since 1982
Inflation Gauge Used by Federal Reserve Hits Highest Level Since 1982
Inflation Gauge Used by Federal Reserve , Hits Highest Level Since 1982.
On July 29, the Bureau of Economic Analysis reported that the personal consumption expenditures (PCE) price index jumped 6.8% since last year.
The Fed uses the index as its primary inflation gauge.
The 12-month gain is the highest since the 6.9% jump that occurred in January 1982.
Not including food and energy, core PCE rose 4.8% compared to a year ago.
Monthly, core PCE increased 0.6%, the most since April 2021.
Monthly, core PCE increased 0.6%, the most since April 2021.
Nick Bunker, economic research director at job placement site Indeed, says, , “The rest of the economy might be slowing down, but wages are speeding up.”.
Competition for workers remains fierce as employers have to keep bidding up wages for new hires.
These red-hot wage growth statistics may fade in the near term, but there’s a long way for them to drop, Nick Bunker, economic research director at job placement site Indeed, via CNBC.
CNBC reports that the Fed approved another 0.75 percentage point interest rate increase.
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Chairman Jerome Powell said the central bank is “strongly committed” , to combatting inflation and is paying attention to food and energy costs even though it typically doesn't.
Chairman Jerome Powell said the central bank is “strongly committed” , to combatting inflation and is paying attention to food and energy costs even though it typically doesn't.
The problem with the current situation is that if you have a sustained period of supply shocks, those can actually start to undermine or to work on de-anchoring inflation expectations.
The public doesn’t distinguish between core and headline inflation in their thinking, Jerome Powell, Federal Reserve Chairman, via CNBC.
Core inflation is a better predictor of inflation going forward, headline inflation tends to be volatile.
So, in ordinary times, you look through volatile moves in commodities, Jerome Powell, Federal Reserve Chairman, via CNBC