CPI

U.S. consumer prices accelerated in May as gasoline prices hit a record high and the cost of services rose further, suggesting that the Federal Reserve ...

Register now for FREE unlimited access to Reuters.com "Disposable income will be cut back and obviously it all point to recession. Register now for FREE unlimited access to Reuters.com The consumer price index increased 1.0% last month after gaining 0.3% in April, the Labor Department said. Register now for FREE unlimited access to Reuters.com

Surging food, gas and energy prices all contributed to the gain, with fuel oil up 106.7% over the past year. Shelter costs, which comprise about one-third of ...

The paper asserts that the current inflation predicament is closer to the 1980s situation than it appears because of differences in the ways that CPI is computed then and now. With 75 basis points of interest rate rises already under its belt, markets widely expect the Fed to continue tightening policy through the year and possibly into 2023. ... I struggle to see how the Fed can back off." May's report likely solidifies the likelihood of multiple 50 basis point interest rate increases ahead. Real wages when accounting for inflation fell 0.6% in April, even though average hourly earnings rose 0.3%, according to a separate BLS release. The 5.5% 12-month gain is the most since February 1991. Excluding volatile food and energy prices, so-called core CPI was up 6%, slightly higher than the 5.9% estimate. New vehicle prices rose 1% in May. On a 12-month basis, real average hourly earnings were down 3%. Core inflation excluding food and energy rose 6%. Both were higher than expected. "Obviously, nothing is good in this report," said Julian Brigden, president of MI2 Partners, a global macroeconomic research firm. Friday's numbers dented hopes that inflation may have peaked and adds to fears that the U.S. economy is nearing a recession.

U.S. consumer prices accelerated in May to the highest since 1981, as Americans grapple with a surge in the cost of gas, food, and shelter, data showed ...

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The increase in the consumer price index in May was more than triple the gain in the prior month. Economists polled by The Wall Street Journal had forecast a ...

“U.S. inflation sped up in May, with nearly every item zooming higher, and another big core jump suggests the peak might be some ways off. The big worry on Wall Street is that inflation is shifting to services from goods. More bad news: Gas prices rose again in June and hit a record high. Either approach would be bad for the economy. The longer that goes on the more strain it will place on American households and hurt the economy. The central bank also risks inducing a recession in its effort to quell inflation. Speculation about a rate-hike “pause” in the fall looks farfetched. The last time inflation rose as rapidly was in 1981. Shelter costs account for a third or more of a typical household budget. Prices are likely to show another big increase in June. Gas prices have jumped again to record highs. Economists polled by The Wall Street Journal had forecast a 0.7% advance.

The latest Consumer Price Index showed a re-acceleration in inflation, dashing hopes that price increases had peaked.

The World Bank expects the rate of global consumer price inflation to drop below 3 percent next year. By contrast, the organization partly blamed inflation in the United States on “ over-buoyant demand,” which is more responsive to tighter monetary policy. The question — and big uncertainty — is how much Fed action will be needed to bring inflation under control. Data from the index is also used to come up with the P.C.E. figures. Rents are climbing swiftly as Americans compete for a limited supply of apartments, restaurant bills are heading higher as food and labor costs rise, and airline tickets and hotel rooms cost more because people are eager to travel and because inputs like fuel and labor are more expensive. At the same time, the war in Ukraine is cutting into the world’s supply of food and fuel, pushing overall inflation higher and feeding into the cost of other products and services. Travelers can save more than $100 each on the cost of a domestic flight and hotel stay if they plan trips in late August rather than in June or July. The price of gasoline rose 4.1 percent in May over the previous month, bringing the increase from a year ago to 48.7 percent. The central bank is expected to raise its benchmark rate by half a percentage point next week, and then again in July. Polls consistently show voters rate inflation as the country’s top economic problem and expect it to worsen. Friday’s release of Consumer Price Index data from the Labor Department contradicted, at least for a month, some of the administration’s more optimistic predictions. Fed officials are watching for signs that inflation is cooling on a monthly basis as they try to guide price increases back down to their goal, but Friday’s report offered more reason for worry than comfort.

The increase in CPI was broad-based — driven by rising prices for shelter, gasoline and food — offering little comfort to those who had suggested that ...

“You’re seeing people move around a lot in those kinds of industries in search of the best options.” “Low-income voters are historically a low-turnout group, yet their strong turnout helped Biden and the Democrats win in 2020,” Carly Cooperman, a Democratic pollster, said. “And it’s the one market they’re kind of relying on to solve all their other problems.” “We really had a lot of demand-driven inflation in 2021,” Marc Goldwein, senior vice president and senior policy director at the Committee for a Responsible Federal Budget, said. Wages rose 4.7 percent from last year in April, according to the Atlanta Fed. Those working in traditionally lower-paid industries saw an even bigger jump. “A soft landing will be very difficult,” Goldwein said. Nearly seven in 10 voters say the economy is somewhat poor or very poor, a new Global Strategy Group poll provided to POLITICO found. “We are looking to inflation moderating in the months ahead,” a White House official told reporters on Thursday before the release of the numbers, citing rising labor force participation, declining job openings and slowing wage growth. The price of air travel jumped another 12.6 percent in May after rising 18.6 percent in April. “We’ve seen jet fuel costs go up by 40 percent since Putin’s aggression began,” the White House official said. “That’s a big deal, [especially] when your earnings are limited, and you’re living paycheck to paycheck, and there’s absolutely no wiggle room.” Economists had expected inflation to moderate somewhat this month, with some predicting that the price increases had peaked.