Core Consumer Price Inflation Soars to Levels Not Seen Since 1992

Contact Your Elected Officials
The Epoch Times

Consumer prices, excluding the volatile food and energy components, soared well beyond the Federal Reserve’s 2 percent target in the year to May, reaching levels not seen in nearly 30 years and reinforcing inflation concerns.

The so-called core personal consumption expenditures (PCE) price index, which excludes food and energy and is the Fed’s preferred method for gauging inflation, rose 3.4 percent in the 12 months to May, after rising 3.1 percent in the year to April, the Commerce Department said on Friday. The last time the core PCE inflation gauge saw a similar year-over-year vault was in April 1992.

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

Fed officials have repeatedly said they believe the current bout of spiking prices is transitory as they continue to tolerate inflation running hot in the shorter term, arguing that a premature withdrawal of crisis support measures—near-zero interest rates and around $120 billion in monthly bond buys—would risk derailing the economic recovery.

Federal Reserve Bank of Minneapolis chief Neel Kashkari said on Friday that he doesn’t expect the high inflation readings to last and that Americans will return to the labor market in large numbers by the fall, when the supplemental federal pandemic unemployment boost runs out.

Industry groups and business owners have been complaining about a shortage of labor, and Republican leaders in dozens of states have moved to opt out of the federal unemployment compensation boost to help address the hiring crunch.

Economists and investors have widely shifted their spectrum of concerns from slow growth, high unemployment, and deflationary pressures at the beginning of 2021, to inflation, with their gaze now keenly set on how the Fed navigates the delicate balance between supporting the labor market recovery and containing upward price pressures.

BY TOM OZIMEK

Read Full Article on TheEpochTimes.com

The Thinking Conservative
The Thinking Conservativehttps://www.thethinkingconservative.com/
The goal of THE THINKING CONSERVATIVE is to help us educate ourselves on conservative topics of importance to our freedom and our pursuit of happiness. We do this by sharing conservative opinions on all kinds of subjects, from all types of people, and all kinds of media, in a way that will challenge our perceptions and help us to make educated choices.

Doxed Democrats Are Getting Fired Left and Left

Not a misprint because a title of “left and...

Hold Up, Feds, Without Federalism, There Is No USA

Federalism is essential to governing the U.S., yet the federal government is undermining it by bribing states to implement unnecessary federal programs.

A Widow Inspires The World

Erika Kirk moved the nation with her speech two days after her husband’s assassination, vowing to continue his mission and grow Turning Point USA.

Both Left and Right Are Making Lists

The right admired Charlie Kirk for his faith and patriotism, while the left opposed him for dismantling their positions and narratives with ease.

Redemption’s playbook: The Senior

The Senior isn’t your usual underdog tale, it’s real, it’s raw, and it flips every cliché on its head with a playbook full of grit and plenty of aftermaths.

Thousands Honor Charlie Kirk at DC Prayer Vigil

Thousands of people came together to remember Charlie Kirk and offer tearful tributes at the John F. Kennedy Center on Sunday.

Charlie Kirk Assassination Suspect Under ‘Special Watch’ in Custody: Sheriff’s Office

Suspected assassin of Charlie Kirk is on “special watch” in custody and held separately, the Utah Sheriff’s Office spokesperson confirmed.

Employees Fired, Suspended for Celebrating Charlie Kirk’s Death

Multiple U.S. companies warn employees they could lose their jobs if they post comments celebrating or mocking the assassination of Charlie Kirk.

Turning Point USA Announces Memorial Service for Slain Founder Charlie Kirk

The conservative political nonprofit Turning Point USA has announced a Sept. 21. memorial service for its late founder, Charlie Kirk.

Trump Signs Memo Targeting Direct-to-Consumer Pharmaceutical Advertising

President Trump signed a memo to ensure drug ads give fair, balanced, and complete information to protect and inform American consumers.

Trump Runs out of Patience With China, Sharpens His Words

President Donald Trump’s recent remarks targeting China and its allies mark a noticeable shift in tone.

Trump Signs Order Renaming Department of Defense as Department of War

President Donald Trump on Sept. 5 signed an executive order renaming the Department of Defense as the Department of War.

Trump Signs Executive Order Targeting Countries That Unlawfully Detain Americans

President Trump signed an EO on targeting the unlawful detention of American citizens around the world and to facilitate the release of hostages.
spot_img

Related Articles

Popular Categories

MAGA Business Central