“The biggest acceleration in US consumer prices in almost 13 years is certainly an eye-catching headline, but it’s not a generalized spiral, mainly at one point when the US economy resumes. It appears to be caused by stagnant demand combined with a typical supply bottleneck, especially in some categories such as rentals, hotels and flights.
Not all price increases are about energy price feedthroughs, nor are they a quick comparison to last year’s lows during the worst of the pandemic. And we still don’t know how long the shortage will last. Still, the Fed so far seems to be relatively tolerant of this spike and see it as temporary. In part, this is due to past undershoots of the central bank’s inflation target. Despite monetary easing, consumer prices have been restrained for quite some time.
Consumer inflation in the United States has been the highest since 2008, and the business is booming as unemployed billing reaches pandemic lows.business
Source link Consumer inflation in the United States has been the highest since 2008, and the business is booming as unemployed billing reaches pandemic lows.business