Ouch. Photo: John G Mabanglo/EPA-EFE/Shutterstock It turned out things could get worse. June has been the steepest month yet in this long, difficult season of inflation, with prices not only notching a new Biden-era record in a string of them, but hitting the highest peak in 41 years, according to the data from the federal government released on Wednesday. The Consumer Price Index, which measures the price of goods, rose 9.
Arguably the largest fact in this economic mess is the high price of oil . Gas rose by 8.2 percent during the past year, the biggest increase in almost 18 years. With the war in Ukraine snarling the world’s supply, and U.S. refinery capacity down, prices for energy peaked during the start of the summer driving season.
But it’s not all gasoline, and this is where things get a little hairy. There’s another index that the Fed pays attention to, the so-called “core CPI,” which takes out energy and food prices. That index, which is largely shelter and services, is up 5.9 percent for the year — lower than the peak in April, but still high. Central to that is housing costs. In a note from Comerica’s Chief Economist, Bill Adams said that shelter costs were getting passed along from the insane market run-up.
There are some bright spots. The price of meat and poultry actually fell in June — something surely noticed by the July 4 grill-masters of America. Airfare and hotels did, too, even though that already feels like stale data. The important thing to keep in mind, though, is what’s next, and how the central bank is going to act. Last month, after the Fed raised interest rates by 0.
KevinTDugan The 1% are getting a bleeding slowly tax cut from bottom to top. Someone needs to do something ...
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