Posted on 12/13/2022 6:38:52 AM PST by Red Badger
The Consumer Price Index (CPI) rose 7.1% between November 2021 and November 2022, according to a Tuesday report from the Bureau of Labor Statistics, showing that inflation has continued to slow amid harsh contractionary policy from the Federal Reserve.
The month-to-month increase of 0.1% was below analysts’ forecasts, while core inflation, which factors out the more volatile food and energy categories, rose 0.2%. An increase in food prices of 0.5% and an increase in shelter prices of 0.6% contributed to the headline number as energy prices fell 1.6%.
Year-over-year inflation as of November was lower than the previous October reading of 7.7%. Energy costs have fallen from their peak earlier this summer.
Policymakers at the Federal Reserve have been carefully tracking data releases on inflation and employment as officials reverse nearly three years of aggressive monetary stimulus, including near-zero target federal funds rates and the purchase of government securities from market actors. Policymakers have raised rates by three-quarters of a percentage point on four consecutive occasions, leading to volatility in the housing market and raising the cost of borrowed funds for consumers and businesses.
Bankrate Chief Financial Analyst Greg McBride predicted in comments provided to The Daily Wire that central bankers will raise target interest rates by one-half of a percentage point at their next meeting. “They will still be raising interest rates now and into 2023,” he remarked. “The ultimate stopping point is unknown, as is how long rates will stay at that eventual destination.”
The decision to hike rates by three-quarters of a percentage point rather than the quarter-point customary pace had not been made in nearly three decades, let alone on four consecutive occasions. McBride added that the months ahead will see the Federal Reserve increasing rates “at a more customary pace.”
Americans have been relying upon credit card debt and using their previous savings amid the continual cost pressures. Households only saved 2.3% of their disposable income, marking a salient decline from savings rates between 7% and 9% of income in the years before the lockdown-induced recession in February 2020, according to data from the Bureau of Economic Analysis. The decline in savings occurs despite favorable interest rate conditions.
“Credit card rates are at a record high and still increasing. Auto loan rates are at an 11-year high, home equity lines of credit are at a 15-year high, and online savings account and CD yields haven’t been this high since 2008,” McBride added. “Consumer borrowing and savings rates will climb further. Pay down costly credit card debt and boost emergency savings to better weather whatever may lie ahead economically.”
Recent policy actions from the Federal Reserve have also caused mortgage rates to witness one of the most significant sustained increases in decades. The 30-year fixed mortgage rate remained below 3% for much of the past two years, according to data from government-backed mortgage company Freddie Mac, before briefly surpassing 7% last month.
“After cresting above 7%, mortgage rates have pulled back a bit but not enough to impact buyer affordability,” McBride continued. “The year-to-date rise in mortgage rates has still stripped would-be homebuyers of one-third of their buying power.”
Stop playing number games. We’re not stupid..we’re losing money faster than we can spend it.
Happy Days are here again!
WOW! Between branDUHn and yellin, it just doesn’t get much better eh? Happy days are here again.....🤔🖕
7% is horrible, nothing good about it.
government will never tell the truth ever again because government can’t handle Americans knowing the truth
Horse transport 4 yrs ago 150. Now 550
Anyone price eggs, meat and dairy products lately? 7.1% my ass.
Eggs and Dairy are now guarded by armed guards...............
How’s that transitory inflation working out?
They just need to figure out what else to take out of the inflation numbers to make it look better.
Kind of like when someone is hitting you on the head with a board and they stop, you feel better then.
There are a lot of companies who forward priced continued CPI growth into their pricing. Look for those firms to post significant earnings increases in the early part of 2023 IMO. The pricing unfortunately will stick.
Since last July, the prices for a small cart of my regular grocery items jumped from $96 to $147. Some specific items... dozen eggs from $.94 to $2.82, gallon milk $2.65 to $3.44, 50 lbs. dog food $20.48 to $27.48, 13 oz. tortilla chips $.92 to $1.78, chip dip $1.00 to $1.99, 5lb. boneless chicken breast $9.90 to $14.80. The Carter years were paradise compared to this.
Fun with numbers time.
When the Full Recession hits, the Republicans will bear the full brunt of blame from the Marxiststream Media.
People just gloss over the fact that year over year numbers are comparing the prices to last November where inflation was already rampant. Prices continue to rise on all consumables with food items taking the worse hit. Everything at the grocery store on my visit last week had increased another 5 to 10 percent. If you compare prices to what they were two years ago, you get a better idea as to how bad inflation actually is at the moment.
I’ve known government agencies have been fudging the numbers for years, but they have gotten so much worse at it under Biden. Also, remember while Trump was President and the media all pretended the economy was so, so awful? Well, now it actually is awful and they are pretending everything is awesome. Unexpectedly!
BINGO!......................
Local gas prices have recently dropped to near-early Biden Admin numbers.
One station is at $2.38. Others are scattered upward to $2.53.
These numbers may cause the FED to increase only 50 basis points this week.
Ya right! I saw a 15% increase in the last 2 months. The progressive communist fascist biden/obama/Xi cartel is destroying the US intentionally.
Good news, everybody!
The tsunami wave was only 71 feet tall instead the 77 feet we expected.
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