Posted on 08/21/2021 8:01:16 PM PDT by E. Pluribus Unum
U.S. inflation showed some cooling off in July after posting large gains in prior months. Consumer prices rose at their slowest monthly pace since February, providing some relief to those in the “transitory” camp, who hold that this bout of inflation isn’t a long-term phenomenon.
But, inflation fears still linger. The year-on-year increase in consumer prices remained stubbornly high at 5.4 percent, the same as in June.
While it’s unclear when inflation could return to a level closer to its 2 percent long-term trend, economists are increasingly talking about a gradual slowdown in inflation in the months and quarters ahead.
In a recent note, Goldman Sachs economists state that current levels of inflation will prove transitory, although a rapidly tightening labor market poses a risk as it could “translate into more persistent inflation pressures down the road.”
A swift rebound in the economy and a tight labor supply have returned the upper hand to American workers. Employers are competing to attract qualified candidates by raising wages and offering bonuses and other perks.
Companies are passing along these higher labor costs to consumers via price increases, hence adding to the inflationary pressures. And a record level of open job positions in the country suggests that businesses may continue to raise wages to attract people, which could in turn boost consumer prices further.
U.S. job openings reached an all-time high of 10.1 million in June. Layoffs also hit a record low as companies want to hold onto their employees to weather the labor crisis in the country.
Meanwhile, optimism among U.S. small businesses is dipping as labor shortage and supply chain constraints continue to cripple their business operations. The NFIB Small Business Optimism survey in July showed that a record-high 49 percent...
(Excerpt) Read more at theepochtimes.com ...
Just keep printing money in honor of the Weimar centennial.
/s
Nothing destroys the wealth and savings of the middle class like inflation.
If the democrats have their way, all middle class folks will become GOV dependent.
But this is just “transitory” inflation. Apparently that’s not as bad as regular inflation.
Com’on Man.
pResident Joe(MIA)Biden has told us that the price increases are strictly temporary.
Shocked I tell you! I am shocked!
I cannot fathom how paying people to stay home and not work, shutting down pipelines and oil and gas exploration, increasing illegal alien traffic into the USA, increasing welfare, not allowing landlords to collect rent, continued lockdowns and mask mandates; would EVER effect the economy!
I am shocked!
Inflation is going to be high for at least 18 months. The money supply rate of growth is being slowed down some but it was still 15.3% this July. Since it has been 30% for months before that there is still plenty of adjustment for the markets to catch up to. It’s going to top Carter levels.
The price of goods will never drop.
Unexpected
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.