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. .
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