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Sep 4, 2022 · Investors should be cautious for the rest of 2022 about US equity and credit as markets have not absorbed the Federal Reserve’s determination to keep interest rates as high as 4 per cent ...
Aug 20, 2024 · In a recent paper in the Review of Economic Dynamics, Cochrane argues that higher inflation resulted from the federal government pouring trillions of dollars in stimulus spending into the economy ...
Dec 10, 2022 · During 2022’s second and third quarters, the metric set a record, increasing nearly 50% over the typical level from 2011 to 2020. ... economists say, for inflation to directly produce higher ...
Jul 17, 2024 · In doing so, they found that federal spending was two to three times more important than any other factor causing inflation during 2022. Specifically, their results showed that: 42% of inflation could be attributed to government spending. 17% could be attributed to inflation expectations — that is, the rate at which consumers expect prices to ...
- The Recent High Inflation Rate
- Breaking Down The Pce Price Index
- The Decomposition of Recent High Inflation
- Inflation’s Connection with Oil Prices
- A Concern of Housing Services Inflation
One of the major challenges currently facing Federal Reserve policymakers is the sudden rise in the inflation rate first observed in the second half of 2021. The annual rate of personal consumption expenditures (PCE) inflation increased substantially, from 1.41% in January 2021 to 6.06% in January 2022. Similarly, the annual inflation measure using...
Produced monthly by the Bureau of Economic Analysis (BEA), the PCE price index comprises many different goods and services. There are three main components: 1. Durable goods (e.g., long-lasting products such as household items and motor vehicles) 2. Nondurable goods (e.g., clothes and gasoline) 3. Services (e.g., health care and housing expenditure...
The following figure reports the inflation contributions of the three main components of PCE to the current inflation rate (blue bars) and average inflation rate during the previous expansion (orange bars). The gray bars indicate the difference between the two contributions. Clearly, the inflation contributions for all three major components are si...
As evidenced by the figure, nondurable goods inflation has also contributed significantly to the recent high inflation rate. The nondurable goods inflation rate is 7.2%; since it has a 22% share of overall PCE, this inflation contributes 1.57 percentage points to the overall inflation rate. This is a substantial increase from nondurable goods’ mere...
Even though the services inflation rate might look relatively modest so far, there is a concern that services inflation could trend upward in the coming months. One of the concerns stems from the significant increase in housing prices, which tends to be a leading indicator of housing services (the price of rent and utilities). As housing prices go ...
Jan 13, 2022 · Poterba said that it is unclear how much longer rising inflation will last, suggesting it could endure a few more months or last through the second half of 2022. Aside from inflation factors like global transportation, supply-chain and workforce issues, as well as central bank interest rate and balance sheet decisions, he highlighted a perception problem that can prolong widespread inflation.
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Feb 13, 2022 · This week, the federal government reported a 7.5% increase in the cost of goods all across the board compared to a year ago. The consumer price index showed a 4% rise in housing, a 12% increase in ...
