Tag Archives: inflation
Personal income rose 0.3%, while spending rose 0.4%, both much more than expected. Gains in wages and salaries and proprietors’ income bounced back after posting declines in December. Much of the larger-than-expected rise in incomes, however, may be traced to an increase of transfer payments by the government in cost-of-living adjustments and via health care. [...]
Real GDP was revised down to a 2.4% annual rate from an initial estimate of 3.2% in the fourth quarter. Consumer spending showed less momentum than initially reported, while underlying inflation ran a little hotter than initially reported. Exports were also weaker; inventory accumulation was not as large as initially reported (which at least means [...]
The Consumer Price Index (CPI) increased a tepid 0.1% in January and was revised down slightly for the month of December. Increases in the costs of heating our homes were partially offset by a drop in prices at the pump and the discounting that occurred in response to slow mall and dealership traffic; hard to [...]
The measure of the Producer Price Index (PPI) was revamped in the month of January to better reflect changes in the actual costs of production and construction, including input costs associated with services. The new and improved PPI is not comparable to old measures of the index. That said, the trend for the new PPI [...]
The voting members of the Federal Open Market Committee (FOMC) changed to the following in January: Ben S. Bernanke, Chairman; William C. Dudley, Vice Chairman; Richard W. Fisher; Narayana Kocherlakota; Sandra Pianalto; Charles I. Plosser; Jerome H. Powell; Jeremy C. Stein; Daniel K. Tarullo and Janet L. Yellen. Ben Bernanke is off now. Stanley Fischer, [...]
The Consumer Price Index rose 0.3% in December, boosted by higher prices at the pump and higher heating oil prices. The cost of shelter was also large and in response to escalating rents but that can’t be sustained. Rents are now much higher than the marginal costs of home ownership,
The Producer Price Index (PPI) jumped 0.4% in December, largely in response to higher prices at the pump and for heating oil customers, mostly in the Northeast. That will show up as higher utility bills for December because the winter weather was unusually harsh. The core (nonfood and nonenergy) PPI rose 0.3%, still more than [...]
The Consumer Price Index (CPI) flatlined in November as a drop in energy prices offset price increases in the service sector. The rise in prices was in non-medical services; both medical services and prescription drug costs continued to moderate in November, which reflects what appears to be a more systemic trend in medical costs.
The Producer Price Index (PPI) dropped 0.1% in November from October, mostly because of a 0.4% drop in energy prices. Gasoline prices plummeted 0.7% alone. Food prices were flat, while the core PPI (prices excluding food and energy) rose a tepid 0.1%. The increase in the core was attributable to higher vehicle prices
Personal disposable incomes dropped 0.2% both before and after adjusting for inflation in October. That was despite the end of government furloughs, which took place in July and August. Moreover, government workers who were forced to work without pay or were sent home during the government shutdown were paid retroactively.