Here’s why inflation is so high, and when it might ease
As any American who has bought a carton of milk, a gallon of gas or a used car could tell you, inflation has settled in. And economists are now voicing a more discouraging message.
Inflation
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U.S. consumer prices soared 6.2% in past year, most since 1990
Inflation is eroding the strong gains in wages and salaries that have flowed to America’s workers in recent months, creating political headaches for the Biden administration and congressional Democrats and intensifying pressure on the Federal Reserve.
Producer prices rise 8.6%, matching September record high
The Labor Department reported Tuesday that its producer price index—which measures inflation before it hits consumers—rose 0.6% last month from September, pushed higher by surging gasoline prices.
Fed pulls back economic aid in face of rising uncertainties
Federal Reserve Chair Jerome Powell said the Fed was sticking by its bedrock economic forecast. Yet, the nation’s leading economic figure acknowledged that it isn’t at all clear when or even whether things will play out the way he and other Fed officials hope.
Fed to start reining in economic aid as inflation risk rises
The Fed’s likely decision this week to taper its bond purchases comes as high inflation is bedeviling the U.S. economy for much longer than Federal Reserve Chair Powell and many other officials initially expected.
Consumer goods behemoth P&G warns retailers to expect higher prices
Procter & Gamble, the maker of Pampers diapers, Tide detergent and Crest toothpaste, said it’s raising prices on a range of goods as higher commodity and freight costs are set to take a bite out of its profits.
Resilient shoppers pushed retail sales up 0.7% in September
Americans continued to spend at a solid clip in September even while facing sticker shock in grocery aisles, car lots and restaurants as snarled global supply chains slow the flow of goods.
Inflation rises 5.4% from year ago, matching 13-year high
The unexpected burst of inflation this year reflects sharply higher prices for food and energy, but also for furniture, cars, televisions, and other largely imported goods.
Social Security cost-of-living adjustment largest in decades
The biggest cost-of-living adjustment in 39 years follows a burst in inflation as the economy struggles to shake off the drag of the coronavirus pandemic.
Consumer spending rebounded in August despite COVID
Americans bought more furniture, clothes, and groceries during the month, while the delta variant caused them to pull back on traveling and eating out.
Powell defends Fed policies, says inflation may persist
Federal Reserve Chair Jerome Powell on Wednesday stood behind the ultra-low interest rate policies he has pursued since the pandemic decimated the economy more than 18 months ago. But he acknowledged inflation has stayed higher for longer than he expected.
Powell says spike in inflation lasting longer than expected
Federal Reserve Chairman Jerome Powell said that the unprecedented process of reopening the economy after the COVID shutdowns has resulted in a number of problems that could continue in coming months.
U.S. consumer prices see lowest increase in 7 months
While the upward march of prices appears to have eased last month, economists caution that the same underlying causes remain. Supply chains are still snarled, especially for critical components like computer chips, and consumer demand is easily outpacing supply.
U.S. producer prices jump unprecedented 8.3%
Inflation at the wholesale level saw its biggest annual gain since the Labor Department started calculating the 12-month number in 2010.
Council committee advances inflation wage change, paid parental leave
An Indianapolis City-County Council committee on Tuesday unanimously voted to advance a plan allowing public employees’ wages to rise with inflation, as work continues on the city’s first public pay scale change in more than a decade.
Biden administration ramps up antitrust efforts amid worries about high prices
Senior administration officials have been worried about polling showing that voters—including many Democrats—blame President Biden’s economic policies for high inflation.
U.S. consumer spending slows, while inflation hits three-decade high
Consumer prices over the past 12 months have risen 4.2%, the biggest 12-month gain since a 4.5% increase for the 12 months ending in January 1991.
Powell: Fed on track to slow down aid for economy later this year
In a speech being given virtually to an annual gathering of central bankers, Federal Reserve Chairman Jerome Powell stressed that the beginning of tapering does not signal any plan to start raising the Fed’s benchmark short-term rate.
Fed discussed pulling back on bond purchases later this year
The Federal Reserve is edging toward an announcement that it will begin paring the pace of its Treasury and mortgage bond buying, which now amounts to $120 billion a month.
Wholesale costs up 1% for second straight month
Prices at the wholesale level over the past 12 months are up a record 7.8%, the largest increase in that span of time in a series going back to 2010.