Key Inflation Gauge Posts Fastest Annual Price Gain in 30 Years

The Epoch Times ^ | August 27, 2021 | Tom Ozimek

[E. Pluribus Unum]

The Federal Reserve’s preferred inflation gauge, the so-called core personal consumption expenditures (PCE) price index, vaulted in the 12 months through July to levels not seen in 30 years.

The Commerce Department said in a release Friday that core PCE rose 3.6 percent over the year in July, matching last month’s level, which was an increase from 3.5 percent in May and 3.1 percent in April.

The last time the core PCE inflation gauge saw a similar year-over-year vault was in July 1991, while the highest level the measure has hit is 10.2 percent in February 1975, when the economy was gripped in a troubling upwards wage-price spiral fueled by rising inflation expectations on the part of consumers.

The Fed looks to core PCE as a key inflation measure that informs its monetary policy, which has an inflation target of a longer-run average of 2 percent.

On a monthly basis, the core PCE gauge rose 0.3 percent between June and July, after rising 0.5 percent the prior month, suggesting inflationary pressures may have peaked.

It comes as Fed officials are meeting virtually for an annual economic symposium in Jackson Hole, Wyoming, on Friday, with investors watching closely for signs of when and how the central bank may begin to roll back its extraordinary support measures for the economy. In response to the pandemic hit to the economy, the Fed last year dropped interest rates to near zero and set out on a massive asset purchasing program, buying around $80 billion in Treasury securities and $40 billion in mortgage securities per month.

[JoSixChip]

while the highest level the measure has hit is 10.2 percent in February 1975

biden's reply: "Hold my beer!"

[Revel]

Congress is working on spending another 5 trillion. I expect inflation to get a lot worse.

[BipolarBob]

This is proven EVERY time I go to the grocery store.

[Nateman]

Inflation is going to hit 25% yearly soon. That is what happens when the money supply is expanded like it has been. The RATs want to grind the middle class between inflation and taxation as part of their Communist Revolution.

[lurk]

Wait til Nancy’s $3.5T big spender hits the printing press. More inflation than Sheila J Lee’s backside.

[Boomer]

So does this mean there will be a 9% increase on the Social Security checks in January?

Snicker snicker. Funny how they base it on inflation but they change the goal posts on what inflation they go by. Inflation of gasoline price goes up so they don’t base it on that at all but rather food. Also it’s not uniform from state to state but the federal SS check increase is the same regardless.

[LumberJack53213]

This is my biggest fear in regard to retiring and chancing it on SS and savings

[cuban leaf]

That’s why I moved to a low cost of living state. Social security is the same no matter where you live in the United states. You may not be able to live on it in Manhattan, but in rural Kentucky you can live like a king.

[Boomer]

Same here. Politics aside I could not live in San Diego on my income but in rural Arizona I can live okay. Not great but not bad either.

[Oatka]

This is my biggest fear in regard to retiring and chancing it on SS and savings

Put a percentage that you are comfortable with into physical (hold in hand) silver and gold as a store of value - not necessarily as an investment, though it may prove to be. People have been doing that for thousands of years and the times we are in now is no different.

[LumberJack53213]

Silver is kind of fun to buy since it’s cheap and the coins are interesting

[Wuli]

You can blame every single one of the “stimulus” acts.

Classic inflation = too much money chasing too few goods.

[Republic Rocker]

Americans will vote their pocketbook sooner or later, look to the grocery bill, the pump, and housing.......

[oldtech]

If you happen to be in a low-cost-of-living-state on S.S., you may get by OK...for awhile. Here’s what get gets me about the stated rate of inflation....many things it is based on may not affect me, but some things are more highly inflated than others. My needs are reasonably simple, utilities for my home, a few groceries, a little gas, & that’s most of it, but if some of those items are grossly inflated, then I’m put in a bind A 10% increase(yeah,right) in S.S. might sound like a lot, but by the time Medicare is subtracted from it, your check is still pretty small in comparison to what you must pay out.

[CurlyDave]

This is my biggest fear in regard to retiring and chancing it on SS and savings

If you chance it on SS and savings you will surely lose to inflation.

If you retire on SS and investments your chances are much better.

[E. Pluribus Unum]

You can blame every single one of the “stimulus” acts.

[Oatka]

>Silver is kind of fun to buy since it’s cheap and the coins are interesting

Indeed. Both numismatic and bullion coins have some artistic designs. Lots of dealers out there as well as your local coin shop. Here’s one on-line dealerwho has a wide variety of bullion coins:
https://www.goldenstatemint.com/Precious-Metal-1-oz-Silver-Rounds/

Check out
https://www.reddit.com/r/Silverbugs/ for people showing off their stuff
and
https://www.reddit.com/r/Wallstreetsilver for the political end of it

[Wuli]

You’ re welcome my humble citizen. LOL

[LumberJack53213]

Thank you very interesting