Offbeat Inflation jumps 2.9 percent in largest annual gain in 6 years

17:32  12 july  2018
17:32  12 july  2018 Source:   msn.com

Home prices are high. What could cool them down?

  Home prices are high. What could cool them down? Housing supplies are increasing in many cities, starting to reverse a long-term decline that has driven up home pricesLoad Error

But inflation jumped 2 . 9 percent from a year earlier, the largest annual gain since February 2012. Core prices, which exclude the volatile food and energy categories, rose 0.2 percent in June and 2.3 percent from a year earlier.

The U.S. inflation rate by year is the percent change in prices from one year to the next, or year -over- year . That's when growth is positive, with healthy 2 percent inflation . As the economy expands beyond 3 percent growth, it creates asset bubbles.

Consumer prices rose in June from a year earlier at the fastest pace in more than six years, lifted by more expensive gas, car insurance, and higher rent.

The Labor Department said Thursday that the consumer price index ticked up just 0.1 percent in June. But inflation jumped 2.9 percent from a year earlier, the largest annual gain since February 2012. Core prices, which exclude the volatile food and energy categories, rose 0.2 percent in June and 2.3 percent from a year earlier.

Solid economic growth and supply bottlenecks have pushed inflation past the Federal Reserve's 2 percent target, after price gains had languished below that level for six years. That is a key reason that Fed officials expect to raise short-term rates twice more this year.

Long dormant, inflation reawakens investors' fears

  Long dormant, inflation reawakens investors' fears After years in which inflation was barely a concern, it has been creeping back up toward its long-term average.Inflation may not be a major preoccupation — at least not yet — but it’s back as a real concern.

U.S. inflation accelerated in May to the fastest pace in more than six years , reinforcing the Federal Reserve’s outlook for gradual interest-rate hikes while eroding wage gains that remain relatively The annual gain was the biggest since February 2012 and follows a 2.5 percent increase in April.

Average hourly earnings jumped 2 . 9 percent on an annual basis in January, the largest rise since June 2009, from 2.7 percent in December. A pickup in wage growth as the labor market hits full employment is expected to contribute to higher inflation this year .

Price gains may intensify if President Donald Trump makes good on his threat Tuesday to slap tariffs on $200 billion of Chinese goods, including furniture, hats, and handbags. If implemented, those duties, combined with tariffs put in place last week, would mean about half of China's imports would be subject to extra duties, likely boosting costs for consumers.

Andrew Hunter, an economist at Capital Economics, said overall inflation may decline in the coming months as the recent gas price spikes level off. Prices at the pump averaged $2.88 a gallon nationwide Thursday, down 3 cents from mid-June.

"Nonetheless, with the labor market exceptionally tight and activity expanding strongly, we think that core inflation has further to rise," Hunter said in a research note. "The prospect of further tariffs on Chinese imports will only add to that upward pressure."

Record-Low Number Say They’re ‘Extremely Proud’ to Be American

  Record-Low Number Say They’re ‘Extremely Proud’ to Be American Just 47 percent of respondents said they were 'extremely proud' to be American, according to a new Gallup poll.In 2003, 70 percent of respondents said they were “extremely proud” to be American, marking the poll’s record high. By last year, that number had dropped to a slim majority of 51 percent, foreshadowing this year’s record low.

That was the largest annual gain in a year and followed February’s 2.2 percent increase. Annual inflation is rising as the big price declines from last year drop from the Healthcare costs increased 2.0 percent year -on- year , below the 2 . 9 percent average annual rate over the past 10 years .

Table: Annual Inflation Rates by Month and Year . US Inflation in January Tops Expectations with Broad Gains in Consumer Prices. Resource Links. Bureau of Labor Statistics. Percent Calculators. Reserve Monetary Policy.

Household appliance prices rose in June from a year earlier at the fastest pace in five years, Hunter noted, lifted by a 13 percent increase in washing machine costs. Trump imposed tariffs on washing machines in January.

The Fed's preferred inflation gauge has increased at a slower pace, up 2.3 percent in the past year. But most economists expect the Fed will raise rates a total of four times this year as it attempts to keep inflation in check without cutting off growth.

With consumers and businesses spending more, trucking firms have struggled to hire enough workers to keep goods moving. That has boosted shipping prices, lifting costs for businesses that may soon be passed on to consumers.

In June, gas prices increased 0.5 percent and have soared 24.3 percent in the past 12 months. That has sent prices at the pump toward nearly $3 a gallon, sucking more money from consumers' wallets and offsetting roughly a third of the benefit from last year's tax cuts.

Fuel oil has surged nearly 31 percent in the past year, pressuring airlines. Delta cut its full-year profit outlook Thursday, citing a $2 billion surge in fuel prices. Airlines have tried to offset rising fuel costs in a number of ways, including additional charges for passengers like bag fees.

Rents rose 0.3 percent in June and overall housing costs have increased 3.4 percent in the past year. Auto insurance prices also increased 0.3 percent last month and have jumped 7.6 percent from a year earlier.

New and used cars and medical care have also become more expensive. Clothes and household furniture fell in price last month.

Buffett donates $3.4 billion to Gates' and family charities .
Warren Buffett has donated roughly $3.4 billion of Berkshire Hathaway Inc stock to five charities, the billionaire's largest contribution in his plan to give away his fortune. Buffett's 13th annual donation comprised about 17.7 million Class "B" shares of Berkshire, valued at $192 each as of Monday's market close.The largest block went to the Bill & Melinda Gates Foundation. Buffett's own foundation, named for his late first wife Susan, and charities run by his children Howard, Susan and Peter received the rest.Buffett, 87, has since 2006 made more than $30.

Source: http://us.pressfrom.com/news/offbeat/-164975-inflation-jumps-2-9-percent-in-largest-annual-gain-in-6-years/

—   Share news in the SOC. Networks

Topical videos:

This is interesting!