A key inflation gauge rose 5.8% in 2021, most in 39 years

[mahatmakanejeeves]

Source: Associated Press, via Yahoo! Finance

Associated Press

A key inflation gauge rose 5.8% in 2021, most in 39 years

CHRISTOPHER RUGABER
Fri, January 28, 2022, 8:36 AM

WASHINGTON (AP) — A measure of prices that is closely tracked by the Federal Reserve rose 5.8% last year, the sharpest increase since 1982, as brisk consumer spending collided with snarled supply chains to raise the costs of food, furniture, appliances and other goods.

The report Friday from the Commerce Department also said that consumer spending fell 0.6% in December. A wave of omicron cases discouraged many Americans from traveling, eating out or visiting theaters and other entertainment venues. At the same time, incomes rose 0.3% last month, providing fuel for future spending.

Stubbornly high inflation has hammered household budgets, wiped out last year's healthy wage gains and posed a severe political challenge to President Joe Biden and Democrats in Congress. It also led the Federal Reserve to signal Wednesday that it plans to raise interest rates multiple times this year beginning in March to try to get accelerating prices under control.

Chair Jerome Powell also made clear that the Fed will move to shrink its huge $8.9 trillion of bond holdings soon after it starts raising rates, another step that will likely tighten credit, slow spending and potentially weaken the economy.

{snip}

Read more: https://finance.yahoo.com/news/key-inflation-gauge-rose-5-133645356.html

[Alexander Of Assyria]

1. Yahoo Corporate Mouthpiece got around to mentioning the massive good news later on....

“The economy is expanding at its fastest pace in decades, and job creation reached a five-decade high last year. But the rebound occurred so quickly after the pandemic shutdowns that it left many companies flat-footed, with fewer workers and supplies than they needed.”

But, but, but,……

Only paragraph in long concern article, neglecting to mention the main driver of inflation is as as it always is…a booming economy…thank you Mr. President Biden.

TFG and Corporate media are both envious of your skills and perplexed how you stay so calm in the storms they have send your way, day after day.

[onenote]

4. A booming economy isn't always accompanied by inflation.

The economy did quite nicely during the Clinton administration without inflation surging.

[WHITT]

11. And

the booming economy is not causing the inflation now, which is why raising interest rates won't lower inflation, which BTW is already receding.

[David__77]

2. When housing costs go up, media doesn't similarly treat.

It’s all about who is getting impacted. It’s also crazy that housing isn’t in CPI - it impacts consumers and there’s a price.

[Chakaconcarne]

3. Watched this show on VICE - Black Market - Michael K Williams

One episode was on the use of bots which can now be built by just about anyone... .People are going out and buying hot ticket items within minutes of going on sale and then re-selling at big markups. Mostly around clothing, video games, tickets, etc....making million dollar purchases of shoes, tickets, etc and reselling... If everyday people can do this, I wouldn't be surprised if big company's are doing this as well... Probably not happening everywhere, but people are finding ways into every segment of the economy they can take advantage of.. Virtually no regulation because legislators don't understand the technology.

This episode also talks about streaming farms, where people will set up servers with hundreds of phones each... An artist/tik tokker, youtuber will pay $1500 to have this service produce 300k hits on their music with a click of the mouse....hits/views spawn more hits/views, etc... etc...

Sounds like one day, we will all need a damn bot if we want any chance at getting new things to market or getting inflated to death... crazy shit.

[Alexander Of Assyria]

6. Twitter and all social media was a scam from the get fo. Scammers getting better and hidier.

[Marthe48]

5. A positive about inflation

President Biden called doocy an 'dumb s.o.b.' Lightens up the burden a tad

The question was (paraphrase) 'is inflation bad politically?' Duh

[Alexander Of Assyria]

7. "Inflation can be politically a good thing if it's because of a booming economy...dufus."

Go report that on your fascist channel.

Biden’s retort was perfect, better than sarcasm or satire, straight out dripping disrespect and derision,,,I know who u guys r.

[JohnSJ]

9. That is not it will be viewed by people at the gas pump and food prices. There are a lot of reasons

for it which are beyond the Biden's administration control that were started with the mishandling of the pandemic by the previous administration, along with a sizable portion of anti-maskers/vaxers, pushed by the republican echo chamber, and the slow efforts to get vaccines distributed globally, which adds to the shortages that directly add to inflation.

Biden's assessment was right from the begining, until the virus is brought under control globally, it will be a burden to the everything.

[andym]

8. Sets the stage for the Biden economic miracle

Just like Reagan's "miracle"-- stopping inflation is considered a miracle.In the 70s/80s it was the handiwork of Fed Chairman Paul Volcker that broke the back of stagflation. Carter initially appointed Volcker knowing that it would hurt him in his reelection, because Volcker promised strong medicine for the economy.

[progree]

10. "economists project that growth will slow in the first 3 months of the year to a 1.5% annual

rate or even less".

That report (the 1st estimate of Q1 GDP) comes out in late April.

"Still, economists say steady job gains and increased savings should eventually drive more spending later this year, especially if the omicron wave keeps fading."

The 1st estimate of Q2 GDP comes out in late July.

[cstanleytech]

12. Yet many corporations such as Procter & Gamble are reporting record breaking profits.

It almost seems like a number of corporations are falsely blaming inflation for the price hikes to rake in even more profits and in some cases its a 100% increase or more in profits.