Posted on 10/27/2023 10:45:33 AM PDT by Red Badger
The cost of goods and services rose 0.4 percent for a second consecutive month in September, challenging the view that the Federal Reserve’s rate hikes are still bringing down inflation.
The personal consumption expenditure price index was expected to cool slightly from the prior month.
Over the past year, the index is up 3.4 percent. That is unchanged from the August reading, data from the Commerce Department showed Friday. The Federal Reserve says it wants to bring PCE inflation down to two percent, a rate not seen since President Joe Biden took office in early 2021.
The persistence of inflation at the current level casts doubt on the Fed’s claims that the series of rate hikes from March 2022 through July of 2023 are still pulling down inflation. On Thursday, the Commerce Department said the economy grew at an annual pace of 4.9 percent, much faster than expected. That rate of growth is likely inconsistent with falling inflation or the claim that the stance of monetary policy is significantly restrictive.
The PCE price gauge hit a high of 0.9 percent on a month-to-month basis in June of 2022, the fastest clip of price gains since 2005. On a year-over-year basis, the PCE price index increased 7.1 percent in June 20222, the worst inflation since 1981.
The monthly pace of price gains fell from 0.6 percent in January of this year to 3.1 percent in February, a welcome respite from the prior year’s wave of high inflation that was taken as a sign that the Fed’s monetary tightening was wringing price pressures out of the economy. For the following five months, monthly inflation bounced around in a range of three to one percent. In August, however, price gains jumped back up to 0.4 percent...
(Excerpt) Read more at breitbart.com ...
the Commerce Department said the economy grew at an annual pace of 4.9 percent, much faster than expected.
Doesn't feel like either of these statements is true. Feels like more inflation than that and slower growth than that. But what do I know?
“Unexpectedly”!
Who could have seen it coming!
Lol
Hey, I know what will stop inflation....print more money. That always works....
No...wait....
Well duh! Glad they took notice. The dollar has lost about 40 per cent of it’s purchasing power on it’s way to 60 or 70 per cent.
It’s merely a transitory grip.
The past 30+ years of cheap energy, low interest rates, globalization driving costs down (all supporting government woke social-engineering and debt) relative global peace and USA total hegemony - are now in the rear-view mirror.
We are in a completely new era.
Well gee whiz what a surprise. Who would have thought huge budget deficits with insane spending would ever result in inflation? /s
Geez, we hardly noticed with the positive impacts of branDUHnomics. Fidiots!
The spent $600 Billion in that 30 days with money it doesn’t have. That will make inflation increase more in the future while making your children and grandchildren debt slaves. The only solution is increasing unemployment by 1 million lazy ass government employees by shuttering massive parts of our useless government.
As long as folks continue to max out their credit cards spending whatever credit they actually have left on frivolous overpriced garbage , inflation will remain high. House of cards is coming down soon.....
You’re using an antiquated gold-standard analogy for inflation. It’s fiat currency, not gold or commodity backed.
Try more like as long as govt prints money and spends more than it prints the dollar will continue to devalue. The price of goods will continue to increase regardless of consumer spending.
Do you think Argentina’s inflation is due to credit card spending?
Prices Rise More Than Expected as Inflation’s Grip on Economy Persists!
Seems like we went down this road with our last Rat Potus!
I say again, check the money supply mountain. That is the inflation problem’s start. Now just greed is the driver. Where is all the money going though? Who is hoarding it? As if we didn’t know?
Did you just compare the US to Argentina? Adorable. Its supply and demand.... all there is to it. Folks still have the means to drive demand and there is still an issue with supply so inflation remains. Of course printing money is part of it but theyve been tightening lending (too slowly and much too late) but folks are now using remaining credit (consumer credit at all time high) to prop up the economy not disposable cash (saving levels are near all time lows), under the illusion the light is at the end of the tunnel. Now theyre defaulting and eventually the recession will bite them.
The Bond Market is on it, finally. The Bond Market is bigger than the FED so the FED has to get in line and things will actually move in the right direction going forward. That doesn’t mean it will be popular, but it’s the only way out.
“Now just greed is the driver.”
Why are you greedy?
Biden has made people become positive thinkers there positive every day more shit will be coming down the pike.
What is the merit to being an ass?
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