Key inflation gauge jumped 6.6% in March, most since 1982
Yet, there were signs in Friday’s report from the Commerce Department that inflation might be slowing from its galloping pace and perhaps nearing a peak, at least for now.
Inflation
Articles
U.S. economy shrank by 1.4% in first quarter, but consumers kept spending
The economy’s overall decline in the January-March quarter does not mean a recession is likely in the coming months. Most economists expect a rebound this quarter as solid hiring and wage gains sustain growth.
U.S. consumers still confident, but slightly less so
U.S. consumer confidence dampened slightly in April but remains high even as inflation continues to cloud optimism about the rest of the year.
Why the Fed worries about strongest U.S. job market in decades
As the Federal Reserve sees it, the surge in job postings forces employers to boost wages to attract and keep workers. Those higher labor costs are then passed to customers in the form of higher prices, thereby helping fuel inflation.
Retail sales rose 0.5% in March amid soaring inflation
Soaring prices on everything, particularly at the gas pump, are now making shoppers choosier about how they spend their money.
Amazon adds 5% ‘fuel and inflation surcharge’ to seller fees
In a notice sent to sellers Wednesday, the company said its costs had gone up since the beginning of the pandemic due to increases in hourly wages, the hiring of workers and construction of more warehouses.
U.S. inflation jumped 8.5% over past year, highest since 1981
Even excluding volatile food and energy prices, which have driven overall inflation, so-called core inflation jumped 6.5% over the past 12 months, the biggest such increase since 1982.
Treasurys slump ignites global selloff as rate hikes gain focus
Long-term U.S. Treasury yields jumped to a three-year high on Monday, fueling a global rise in borrowing costs as traders intensified bets on aggressive rate hikes from major central banks.
U.S. inflation might peak in March, but it’s a slow go to Fed’s 2% goal
The Fed last month kicked off what’s expected to be a series of interest rate hikes to tame inflation, but the efforts to temper demand will take time to materialize.
Global food prices soar to record levels on Ukraine war disruptions
The UN Food and Agriculture Organization said its Food Price Index, which tracks monthly changes in international prices for a basket of commodities, averaged 159.3 points last month, up 12.6% from February.
Inflation hitting not-for-profits’ services, ability to fundraise
Not-for-profits of all kinds are getting hurt by inflation, experts say. Price and wage increases are stressing them in multiple ways, making it harder to keep up with their own basic operational expenses while also forcing them to curtail the services they provide.
Biden administration bets strong job market will shield economy from slump
The next few months will test whether President Joe Biden built a durable recovery full of jobs with last year’s $1.9 trillion relief package, or an economy overfed by government aid that could tip into a downturn.
Fed signals more aggressive steps to fight inflation
In minutes from their policy meeting three weeks ago released Wednesday, Fed officials said that half-point interest rate hikes, rather than traditional quarter-point increase, “could be appropriate” multiple times this year.
Key inflation gauge sets 40-year high as gas and food soar
Squeezed by inflation, consumers increased their spending by just 0.2% in February, down from a much larger 2.7% gain in January. Adjusted for inflation, spending actually fell 0.4% last month.
Even as inflation bites, corporate profits remain flush
Big companies have successfully raised prices for their products because their customers have kept lining up regardless. What’s uncertain is how much longer the trend may last, before customers sharply cut back on their purchases.
U.S. quarterly growth revised slightly lower, to 6.9%
Looking ahead, growth is likely to slow sharply this year, particularly in the first three months 2022. Higher inflation will likely weigh on consumer spending as Americans take a dimmer view of the economy.
Biden budget seeks minimum tax on households worth $100M
The introduction of the minimum tax on the wealthiest Americans would represent a significant reorienting of the tax code.
Powell says Federal Reserve will hike further, faster if necessary
Federal Reserve Chairman Jerome Powell said that if necessary, the central bank would be open to raising rates by a comparatively aggressive half-point at multiple Fed meetings. The Fed hasn’t raised its benchmark rate by a half-point since May 2000.
Here’s how higher interest rates will affect Americans’ finances
With inflation raging at four-decade highs, economists and investors expect the central bank to enact the fastest pace of rate hikes since 2005. That would mean higher borrowing rates well into the future.
U.S. producer prices up 10% in February from a year ago
The Labor Department said Tuesday that its producer price index—which tracks inflation before it hits consumers—rose another 0.8% from January to February.