U.S. News
US inflation gauge rises at fastest pace since June, raising concerns over the economy
WHAT YOU NEED TO KNOW:
- The Federal Reserve’s preferred inflation gauge rose 0.6% from December to January, marking the fastest pace since June, and raising concerns that price pressures are entrenched in the US economy.
- The report showed that consumer spending rose 1.8% in January from December after falling the previous month.
- Excluding food and energy prices, core inflation rose 0.6% from December, and on a year-over-year basis, core inflation was up 4.7% in January.
The latest report from the Commerce Department revealed that the Federal Reserve’s preferred inflation gauge rose at its fastest pace since June, further confirming that price pressures remain entrenched in the US economy.
Own This Stock Before Recession Gets Worse
Financial experts are split on the recession. Some deny, some say it’s already started, and some are giving new silly names like a “rolling recession” to try to make sense of it. The fact is much of the market believes a big recession is still coming. Go HERE to See Our Full Report on this Potential Opportunity
(**By clicking link you are subscribing to The Investor Newsletter Daily Newsletter and may receive up to 2 additional free bonus subscriptions. Unsubscribing is easy. Full disclosures found here.)
Sponsored
The report showed that consumer prices rose by 0.6% from December to January, up sharply from a 0.2% increase the previous month, and 5.4% on a year-over-year basis, up from 5.3% in December.
The report also highlighted that excluding volatile food and energy prices, core inflation rose 0.6% from December, up from a 0.4% rise the previous month. Compared to a year earlier, core inflation was up 4.7% in January, versus a 4.6% year-over-year uptick in December.
Additionally, the report indicated that consumer spending rose 1.8% in January from December after falling the previous month.
The surge in prices has exceeded expectations and confounded hopes that inflation was decelerating, thus increasing the likelihood that the Fed could keep raising interest rates this year.
Despite the Fed’s efforts to tame inflation by raising its key interest rate eight times since March of last year, the strong job market remains a worry for the Fed as strong demand for workers is likely to fuel wage growth and overall inflation.
According to Rubeela Farooqi, the chief US economist at High Frequency Economics: “Reaccelerating price pressures, coupled with a still-strong labor market that is restoring incomes and is supporting demand, will keep the Fed on track to hike rates further over coming meetings.”
It is thought that the Fed monitors the inflation gauge that was issued by the Commerce Department even more closely than the government’s better-known CPI. Typically, the PCE index shows a lower inflation level than CPI, in part, because rents, which have soared, carry twice the weight in the CPI that they do in the PCE.
The latest report shows that the US economy is still grappling with inflation, despite the Fed’s efforts to curb it. With inflation showing little sign of slowing down, the likelihood of the Fed continuing to raise interest rates is high, which could lead to potential economic risks down the line.
Source: AP
James
February 26, 2023 at 7:37 am
This is what happens when you have a moran running the country. Now we not only have one, we have hundrrds of them with nothing better to do . I think everybody in Congress should be investigated and if there is one guestion about their ability to lead this country, they should be thrown out. I hope you people who voted these idiots into office are happy. They are killing this country.
CPO Bill
February 26, 2023 at 9:31 am
bidn does have a Great ability to F**k up anything he touches!
Mr. Joseph Grabowski
February 26, 2023 at 1:17 pm
my wife and i are so totally sick of working for 60 years and for what?
has it ever been this bad?
where are all the political people that can make a change and don’t…blah! blah! blah! and still nothing gets done!
and it’s already been said: “the more things change the more they stay the same”!
damn it!: make a checklist of presidential promises that must be fulfilled and sighed by the president with credible witnesses with NO BACKSLIDING or the maximum heavy penalty will be levied on them all up to and including prison time, losing all worldly possessions, and even termination!
we’re heading to nuclear annellation and every day we all become 1 day closer to the end!
jill
February 26, 2023 at 3:45 pm
happens when DemonRats are in office. I learned while back that when Republicans are in office, people and business thrive. Not so when dems are in office and I’m sick and fucking tired of hearing all the promises yr after yr and then NOTHING is done as promised. I don’t understand how people can still vote for them..:( sad state of affairs but keeping my energy higher than them and keep spreading the truth(s).
Sean Richman
February 26, 2023 at 4:15 pm
Joey”mummbles”and his bunch of loonie goonies are anti AMERICA and anti AMERICAN.You can see that by the way they are”PISSIN”taxpayer dollars away on totally ridiculous nonsense things in our country and foreign countries that when the money stops,they will continue to hate AMERICA.
Master Turkeychoker
February 26, 2023 at 9:43 pm
WOW. what a bunch of judgemental commenters. I agree w/everyone of them. I remember just before 1964, the media and politicians laid ground work (propaganda) to take us off gold/silver standard, and how wonderful it would be for our dollar to be able to ‘float’ with all the other currencies in the world. I don`t remember hearing one dissenting voice. Gasoline cost about 20-21 cents/gal. Then came the ‘sandwich’ coins with not a drop of silver in them. Followed by endless price increases for everything. Then I remember politicians claiming we needed well educated people in Congress and they had to raise the pay in order to compete w/private enterprise to get quality folks to run for office. Then the judges saw those pay raises Congress voted themselves and they demanded higher pay, too. I seem to remember my Grandparents and parents arguing a bit over the whole thing, but like to-day, they didn`t bother doing anything meaningful. So, it falls on us to begin fixing this mess that’s taken over 60 yr. to get this far. For the sake of our country, our families, we have to get involved instead of just non-stop bit@hin. Lobby to get the thieves out of office.