Inflation Soars to Highest Level Since 1982

[Michie]

This Forum is a place for respectful discussion and debate of political issues, by Roman Catholics, in the context of the Roman Catholic Faith.


The Consumer Price Index (CPI) increased 0.5% in December, bringing the key inflation indicator’s year-over-year increase to 7%, the U.S. Bureau of Labor Statistics (BLS) reported.

The CPI soared to 7% on a year-over-year basis in December, the highest level in almost four decades, the BLS reported Wednesday. Economists surveyed by The Wall Street Journal projected the index would soar past 7.1% in December.


“There’s still a lot of scarcity in the economy. Consumers and businesses are in great financial shape, and they’re willing to pay up for more goods, more services and more labor,” Sarah House, director, and senior economist at Wells Fargo, told the WSJ.

The core price index, which measures inflation of goods less food and energy, increased 0.6% in December, an increase from November’s 0.5% figure, the BLS reported. Food prices grew 6.3% on a year-over-year basis and energy prices soared 29.3% over the last year.

“It’s still hot, hot, hot, and it’s important because we’re now where the Fed worries about that 7% number getting baked into wages and getting more entrenched,” Diane Swonk, chief economist at Grant Thorton, told CNBC. “You’ve got the Fed in panic instead of patient mode, so the risk is overshooting … We’re now in a position of the Fed chasing instead of anticipating. It’s worrisome.”

Continued below.
Inflation Soars to Highest Level Since 1982 - The Stream

 

[pdudgeon]

This Forum is a place for respectful discussion and debate of political issues, by Roman Catholics, in the context of the Roman Catholic Faith.


The Consumer Price Index (CPI) increased 0.5% in December, bringing the key inflation indicator’s year-over-year increase to 7%, the U.S. Bureau of Labor Statistics (BLS) reported.

The CPI soared to 7% on a year-over-year basis in December, the highest level in almost four decades, the BLS reported Wednesday. Economists surveyed by The Wall Street Journal projected the index would soar past 7.1% in December.


“There’s still a lot of scarcity in the economy. Consumers and businesses are in great financial shape, and they’re willing to pay up for more goods, more services and more labor,” Sarah House, director, and senior economist at Wells Fargo, told the WSJ.

The core price index, which measures inflation of goods less food and energy, increased 0.6% in December, an increase from November’s 0.5% figure, the BLS reported. Food prices grew 6.3% on a year-over-year basis and energy prices soared 29.3% over the last year.

“It’s still hot, hot, hot, and it’s important because we’re now where the Fed worries about that 7% number getting baked into wages and getting more entrenched,” Diane Swonk, chief economist at Grant Thorton, told CNBC. “You’ve got the Fed in panic instead of patient mode, so the risk is overshooting … We’re now in a position of the Fed chasing instead of anticipating. It’s worrisome.”

Continued below.
Inflation Soars to Highest Level Since 1982 - The Stream

What's interesting is that they are throwing a hissy fit over 7 per cent inflation.
Honestly, what did banks expect when the government gave away free money to stimulate the economy?
I think it worked!

 

[Wolseley]

Thanks, Joe.