Consumer inflation hits 6-year high, now outpaces wage growth

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sanfordandson
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Consumer inflation hits 6-year high, now outpaces wage growth

Post by sanfordandson » Thu Jul 12, 2018 12:32 pm

https://www.marketwatch.com/story/consu ... 2018-07-12
The numbers: Consumer prices rose in June at the highest yearly rate since 2012, reflecting a U.S. economy that’s running hotter than anytime since the Great Recession.

The increase in the cost of living rose to a 12-month pace of 2.9% from 2.8%, marking the highest level in more than six years, the government said Thursday. A year ago the 12-month rate stood at just 1.6%.

In June, the consumer price index increased 0.1%. Economists polled by MarketWatch had predicted a 0.2% gain.

A more closely followed measure that strips out food and energy, called the core CPI, advanced 0.2% last month. The yearly increase in the core rate edged up to a more modest 2.3%, the highest benchmark in a year and a half. Core CPI hasn't grown faster than 2.3% since the Great Recession.

What happened: The cost of food rose by 0.2% last month, but the increase was more than offset by a 0.3% decline in the price of energy.

Although gasoline prices rose again, the cost of electricity and natural gas both fell sharply.

Rents and medical care, meanwhile, continued to rise in price. So did new and used cars.

Prices fell for airline fares and clothing.

Big picture: Inflation has shot up over the past year owing to rising oil prices, higher rents, more expensive medical care and growing bottlenecks in the economy for skilled workers and certain key materials.

Also Read: Wholesale inflation jumps to six-year high

The trucking industry, for example, says it can hardly find any more drivers at a time when many older riggers are retiring. That’s causing shipping costs to go up.

The increase in inflation has basically wiped out wage gains by American workers, though they’ve been partly cushioned by the Trump tax cuts. Real or adjusted hourly pay rose 0.1% in June, but it was flat in the past 12 months.

Higher inflation is also pushing the Federal Reserve to raise U.S. interest rates. The Fed expects inflation to level off soon and fall back toward the 2% mark, but if it doesn’t, the central bank might have to act even more aggressively.

What they are saying?: “Inflation isn’t surging, but it is continuing its steady upward climb,” said Jim Baird, chief investment officer at Plante Moran Financial Advisors.

Market reaction: The Dow Jones Industrial Average DJIA, +0.89% and the S&P 500 SPX, +0.78% were to set to increase sharply on Thursday. Investors were heartened President Trump’s reaffirmation of U.S. support for NATO after a tense meeting the day before.

The stock market has been gyrating up and down in the past few months amid worries about a widening trade war. Both indexes have receded from record highs set earlier in the year.

Trade-war tracker: Here are the new levies, imposed and threatened

Also Read: Here’s when Americans will start feeling the pain from escalating Trump-imposed tariffs

The 10-year Treasury yield TMUBMUSD10Y, +0.22% rose slightly to 2.86%. After reaching 3.1% last month, the yield has also fallen in response to growing trade tensions.

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Re: Consumer inflation hits 6-year high, now outpaces wage growth

Post by 1989TransAm » Thu Jul 12, 2018 12:49 pm

Sanford prefers the country to be in the doldrums with the Feds having to have a 0% interest rate in order to keep things going. His heart throbs for the good old days under Obama. :D

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Re: Consumer inflation hits 6-year high, now outpaces wage growth

Post by sanfordandson » Thu Jul 12, 2018 12:51 pm

1989TransAm wrote:
Thu Jul 12, 2018 12:49 pm
Sanford prefers the country to be in the doldrums with the Feds having to have a 0% interest rate in order to keep things going. His heart throbs for the good old days under Obama. :D
I'd like to see our country prosper...hence my disdain for your orange god... :lol: :mrgreen:


It's only going to get worse.

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Re: Consumer inflation hits 6-year high, now outpaces wage growth

Post by 1989TransAm » Thu Jul 12, 2018 12:55 pm

Yearning for the good old days under Obama ^^^^^^^^^^^^^^^^^^^^^^^^^ :D

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Re: Consumer inflation hits 6-year high, now outpaces wage growth

Post by sanfordandson » Thu Jul 12, 2018 2:38 pm

1989TransAm wrote:
Thu Jul 12, 2018 12:55 pm
Yearning for the good old days under Obama ^^^^^^^^^^^^^^^^^^^^^^^^^ :D
We went from bad to worse. Recession is looming in our future thanks to trump

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Re: Consumer inflation hits 6-year high, now outpaces wage growth

Post by exhaustgases » Thu Jul 12, 2018 5:37 pm

We need the good old days of 7% interest on money market accounts, and that for sure was not under the obum bunch.

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Re: Consumer inflation hits 6-year high, now outpaces wage growth

Post by sanfordandson » Thu Jul 12, 2018 5:50 pm

exhaustgases wrote:
Thu Jul 12, 2018 5:37 pm
We need the good old days of 7% interest on money market accounts, and that for sure was not under the obum bunch.
Wont happen anytime in the next 2.5 years.

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Re: Consumer inflation hits 6-year high, now outpaces wage growth

Post by j-c-c » Thu Jul 12, 2018 9:16 pm

1989TransAm wrote:
Thu Jul 12, 2018 12:55 pm
Yearning for the good old days under Obama ^^^^^^^^^^^^^^^^^^^^^^^^^ :D
An intelligent moral compassionate communicative African American vs a lying narcissistic bipolar demagogue?
Tough choice for some I guess.
Vote with your wallet, it speaks volumes about your core values.

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Re: Consumer inflation hits 6-year high, now outpaces wage growth

Post by RevTheory » Fri Jul 13, 2018 7:17 am

And every self-respecting Treasury Director has to make this judgment call. When the economy increases, they have to increase the interest rate to keep inflation at bay. And they know they're going to take a beating for it but it has to be done.

Now this is of course opposed to ohbummer who spent how many years of printing money and quantitative easing to artificially prop the market up and demanding that the interest rates are kept at near zero to keep his Wall Street buddys happy?

Again, Donald Trump could pour 3 gallons of milk on a burning child and you'd be on here tomorrow bitching about why he didn't use water or why it wasn't 2 gallons or why it wasn't 4 gallons and what was her race? If she wasn't white, he's obviously pandering? If she is white, we need a full investigation to see if she has any Russian heritage.

It just never ends with you morons. Look, you lost (thank God!) but if he isn't doing the right thing for the country, vote him out. All of this ridiculous nonsense just makes you look really stupid. We had to suck it up with ohbummer's election, twice!, but we were able to deal with it and go to work and come home and all of that jazz.

Now it's your turn.

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Re: Consumer inflation hits 6-year high, now outpaces wage growth

Post by sanfordandson » Fri Jul 13, 2018 8:42 am

Notice not a single constructive comment about rising inflation and stagnate wage growth from the trumpettes.

gee I wonder why? :lol:

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Re: Consumer inflation hits 6-year high, now outpaces wage growth

Post by gmrocket » Fri Jul 13, 2018 9:01 am

sanfordandson wrote:
Fri Jul 13, 2018 8:42 am
Notice not a single constructive comment about rising inflation and stagnate wage growth from the trumpettes.

gee I wonder why? :lol:

Are you waiting for the guvment to increase your minimum wage...again?

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Re: Consumer inflation hits 6-year high, now outpaces wage growth

Post by sanfordandson » Fri Jul 13, 2018 9:34 am

gmrocket wrote:
Fri Jul 13, 2018 9:01 am
sanfordandson wrote:
Fri Jul 13, 2018 8:42 am
Notice not a single constructive comment about rising inflation and stagnate wage growth from the trumpettes.

gee I wonder why? :lol:

Are you waiting for the guvment to increase your minimum wage...again?
And the streak continues..... =D>

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Re: Consumer inflation hits 6-year high, now outpaces wage growth

Post by RevTheory » Fri Jul 13, 2018 10:39 am

Lil trollboy was just given an honest and accurate explanation about dealing with inflation but he apparently just glazed right over it. Wages are finally going up but that isn't good enough either. Hell, even if they doubled, the Trump-trolls would be on here bitching about how Donald Trump has created something that's unsustainable.

Gotta complain about something!

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Re: Consumer inflation hits 6-year high, now outpaces wage growth

Post by sanfordandson » Fri Jul 13, 2018 10:43 am

6 in a row! Trumptards are on fire today!!

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Re: Consumer inflation hits 6-year high, now outpaces wage growth

Post by j-c-c » Fri Jul 13, 2018 11:01 am

Guess the federal deficit up 16.7% in June over last year is soon to be the dog whistle for another tax cut? #-o

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