Consumer Prices Excluding Food, Fuel Rise as U.S. Rents Up
Source: Bloomberg
The cost of living in the U.S. excluding food and fuel rose in May, propelled by rising rents.
The so-called core measure of the consumer price index rose 0.2 percent last month, the same as in April, a Labor Department report showed Thursday in Washington. The broader measure of consumer prices also climbed 0.2 percent.
Federal Reserve policy makers project strengthening demand combined with more stable energy costs and less appreciation in the dollar will allow more businesses to regain pricing power in coming months. The officials, who voted on Wednesday to leave interest rates unchanged, said they expect inflation will move toward their goal in the medium term.
Inflation is on track to continue to rise toward the Feds 2 percent target, said Tom Simons, a money-market economist at Jefferies LLC in New York, who correctly projected the gain in core CPI. Its not going to be a rapid process though. The core will continue to be supported by housing.
Read more: http://www.bloomberg.com/news/articles/2016-06-16/consumer-prices-excluding-food-fuel-rise-as-rents-in-u-s-climb
jtuck004
(15,882 posts)Millennials and living at home: For the first time on record the most common living arrangement for young adults is living with a parent.
The topic of young adults living at home is critical to the housing market since it will impact future home building, renting, buying, and purchasing behavior for the foreseeable future. It is interesting that Trump being the de facto candidate for one of our major parties is basically a real estate marketer/developer that pitches real estate that is too great for most Americans. On the other end, we have Sanders who is essentially the direct opposite of Trump (i.e., free college tuition, break up the banks, etc). The billionaire and the non-billionaire interesting. At this point, you have 3 candidates left standing and in many households, this divide is playing out. You have Taco Tuesday baby boomers that essentially were fortunate to buy at a time when the housing playing field was easy. I even see this in neighborhoods Im familiar with. These are people that bought and many dont even have college degrees. In virtually every case, many would not be able to buy in their own hood today even if they took a time machine and came back with their similar educational training and inflation adjusted income to todays hyper competitive arena. When a home goes for sale, it is bought by investors or by two working professionals (most common I have seen are tech couples made up of engineers and programmers). Parents may gripe but now many have their Millennial kids living at home. If it feels like a common trend it should be because this is now the most common living arraignment for young Americans.
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http://www.doctorhousingbubble.com/millennials-and-living-at-home-millennial-buying-homes-trends-money-housing/
The ownership is in fewer and fewer hands, as if the plantations are being consolidated.
Igel
(35,300 posts)Percentage-wise, perhaps. But in absolute terms, dunno.
As for appreciation, it's often true that you buy in a new area. It's not built up, it's far from jobs, and since expansion is possible there things are cheaper, cet. par. "Cet. par." is a nice abbreviation for "all other things being equal." A nice house costs more than a shoddy house, but both cost less in newly opened areas than in comparable pre-existing areas.
So in 10 years I wouldn't be able to afford where I live now. On the other hand, it's very likely that if I looked not at where I am now, which would be built up, with shopping and jobs nearby, but a few miles further out (making the new house "like" my old house was) I'd be able to afford *that*.
In other words, as a city grows some areas appreciate. New areas start at baseline. Don't compare onions with apples.
tonyt53
(5,737 posts)Far too many people attend college, just to attend college. They have no plan or goals. Then when they finally do choose a degree path, far too many pick those that are basically useless. With an associates degree in art, you can get a job as a cashier at Kohl's. With a bachelor's degree in art, you can get a cashiers job at Macy's.
Far too many kids are being sold on the idea that they have to have a college education to succeed. They should instead be told that they need some sort of post-secondary education to succeed. When about 1/4 of the incoming freshmen at a typical college never come back for their second year, money and time is wasted. They should probably never have gone in the first place. When about 1/3 of the incoming freshmen that do come back for their second year never graduate with a degree, things are even more wrong. Massive debt piled up and for what? Completely free tuition will only make this situation worse. There has to be some personal responsibility involved and personal investment. Did you know that right now there is a need for tens thousand welders in the US. those jobs pay well and usually have good benefits. They sure pay better than that cashier's job at Macy's. The union building trades are taking in apprentices at record rates. The person gets free schooling and they get paid to work. When they finish up in 4-5 years, they are making $50K-$100K a year with insurance and pensions.
Yes, many boomers were poorly educated. Many jobs available then didn't require a lot of education.You seem to be holding that against them though. But before you start bashing me, I was raised poor as dirt and went to college on a scholarship. I could not have gone otherwise. Graduated with a degree in business and later went back to finally get my mechanical engineering degree. I own an engineering firm. I value a good education but understand that a good education requires a good student that lives in reality. Home sales are up in most parts of the country. Maybe millennials should start asking themselves why they aren't the ones buying those homes instead of blaming everybody else. That is the only real free thing that works equally.
KansDem
(28,498 posts)It only reinforced the "gotta get a college degree" mindset that was prevalent then.
freebrew
(1,917 posts)I don't know where these asshats live, but both are going up here.
Ground beef at near $5, I know, that's cheap elsewhere, but not here.
As for fuel, I assume they just mean gasoline? Energy costs are skyrocketing
'cause state legislators are making it increasingly difficult to go solar.
That's most of the states around:OK, KA, TX, not sure about AR.
I think they're trying to deny another SS raise.
KansDem
(28,498 posts)I live in a community in n.e. Kansas that prohibits the installation of solar panels on the roofs of houses. Not sure why, but it tends to stifle investing in renewable energy for the homeowner.
SusanLarson
(284 posts)They believe this is a sign of Capitalism working which for them it may be, for everyone else its not. Clinton will not do anything to fix it either. She's wholely owned by the top 1%, a group she desperately wants to join.