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Jul 13, 2022 · Published 10:30 AM PDT, July 13, 2022. WASHINGTON (AP) — Inflation’s relentless surge didn’t merely persist in June. It accelerated. For the 12 months ending in June, the government’s consumer price index rocketed 9.1%, the fastest year-over-year jump since 1981.
- Rising Wages
- Energy Cost Conundrum
- Cooling Off Demand
The legion of workers leaving their jobs, especially those in low-wage sectors, has played an enormous role in the rising cost of labor, said Jayson Lusk, a professor and the head of agricultural economics at Purdue University. "To get enough workers to show up now, you need to pay more, so we're seeing rising wage rates throughout many food and ag...
After workers manufacture the products, the goods must be transported. So while you're at the pump paying high gas prices, that means the companies trucking your packages and groceries are doing the same. The average price for a gallon of gasoline in the U.S. is hovering around $4.10, and the price of crude oil, which can affect how much money you ...
The final driver of consumer prices is simply demand. At the onset of the pandemic, the U.S. government unleashed waves of supportive financial measures to fortify the economy as businesses shut down. But Lusk, the Purdue economist, conceded that however necessary those measures were in the short run, they may have led to the excess demand the Fede...
Feb 16, 2022 · 02:23. Supply chain issues, surging demand, production costs, and swaths of relief funds all have a role to play, they say, but politics tend to cause one to point the finger at the supply chain...
Mar 15, 2024 · Inflation emerges when the demand for products and services exceeds the supply. This round of inflation was caused by a breakdown in the supply chain along with an increase in demand.
- Mike Patton
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To answer the question of where inflation is headed, the authors point to two factors: the relationship between vacancies and unemployment and long-term inflation expectations, because the Federal Reserve tames inflation by increasing interest rates. The authors forecast the December 2024 inflation level to range from 2.3 to 4.8 percent.
Apr 27, 2023 · Yet in early 2022, Fed policy started fighting yet another force stoking inflation. Russia’s invasion of Ukraine that February caused food and fuel prices to surge.
Jun 11, 2022 · June 11, 2022. The government reported on Friday that consumer prices climbed 8.6 percent over the year through May, the fastest rate of increase in four decades.
