Consumer prices rose 5.4 percent in July as pandemic disruptions continue
S E E D E D C O N T E N T
Consumer prices increased 5.4 percent last month from a year ago, according to the latest data from the Bureau of Labor Statistics, as pressure from high demand and supply chain issues continues.
The index increased 0.5 percent in July on a month-to-month basis. Economists surveyed by Bloomberg had predicted an increase of 5.3 percent versus a year ago and 0.5 percent from June.
The highest year over year increases were seen in car rentals (73.5 percent), gas (41.8 percent), used cars (41.7 percent), hotels (24.1 percent), and airfare (19 percent).
Specific food items saw increases, led by pork roast (13.7 percent), bacon (11.1 percent), steaks (10.7 percent) and fish (8.5 percent).
Shifts in domiciles also saw pressure, with the cost of moving increasing 13.3 percent and rent going up 2.4 percent.
Pandemic bottlenecks have contributed to much of the index's increase in the past few months. Backlogs for computer chips have delayed new car production, driving up the cost of used cars. Increases in the used car component alone have accounted for a large chunk of previous month's increases.
Airfare has soared as a sooner-than-expected rebound in air travel has been met by airlines who overshot the mark in aggressively furloughing pilots and crewmembers without keeping up adequate training and payroll, despite almost $50 billion in payroll support funding from the government.
Prices for hotels and car rental have also increased with the travel surge and are unlikely to moderate any time soon.
Food supply chains have been whiplashed as consumers shifted all consumption to at-home and delivery, and now have been going out to eat again. Covid restrictions and outbreaks have curtailed food production workforces, restricting supply and pushing up prices, particularly in the meat sector. Menu prices are boosting as restaurants pass on wage increases necessary to hire in a tight labor market. The food away from home index rose 0.8 percent in July, its largest monthly increase since February 1981.
Should workers overall begin to think the rate of increase is here to stay they may start asking for higher wages in other fields besides frontline service jobs. That would push employers to raise prices further.
Economists had widely predicted price increases would follow the surge in consumer demand from both shifting consumption away from entertainment towards products that can be used in or from home, as well as the return to some out of home leisure and travel.
But even top officials have had to extend just how long they expect the "transitory" jumps to last. That's added pressure on the Federal Reserve to increase interest rates.
So far the central bank is holding firm to reaching targets on unemployment and other metrics first, although some regional Fed presidents have spoken publicly about their preferred timeline for when the bank should begin to taper bond purchases and ease back on expansive monetary policies.
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I would venture that Trump's tariffs that Biden refuses to remove have something to do with the increased cost of living, which of course hurts poor families the most.
Nope.
Trumps tariffs were enacted largely in 2018. Inflation was low that entire time and only started ticking up March 2021. It has little to do with our Tariffs and/or retaliatory Tariff's enacted by Canada, China, Europe and Mexico. And more to do with rising energy and commodity costs. Also out of control Federal spending and the COVID crisis isn't helping much either.
It is going to be fun watching the left try to spin this away. People are being hurt big time RIGHT NOW with higher priced every day items and Bidens popularity will continue to dip precipitously because of it.
Four straight months of near record inflation ..... this is not going to end well Joe if it keeps going the way it is right now.
Have the prices of everyday items, so many of which are imported from China, been reduced since 2018?
What every day items would you be talking about? Specifically.
Kitchen utensils such as knives, vegetable scrapers, scoops, ladels, brushes, combs, microwave ovens, hair dryers, razors, TV sets, picture frames, hand tools (or do you require me to be specific about which ones?), washing machines, toys, dolls and teddy bears,
If you're not happy with that small sample, you can fucking well go to Walmart and look at all the cheap items to see where they were made yourself.
Did i ask you to name every "fucking" item that people buy for their homes? No i did not. (edit: nice edit there Buzz)
That said, all the items you mention are not even close to the top commodities helping to drive inflation. Sure, if the cost for those items has gone up then it isn't helping but to the American economy they are a drop in the bucket compared to the main causes that tend to drive inflation here.
That is, an increased money supply, chasing too few products, decreasing the value of the dollar. The supply chain can be a driver of inflation but the two biggest imports by far for the US are energy and lumber. Neither are significant US imports from China.
LOL. You asked what "everyday items" I was talking about - I listed "everyday items", and now you berate me because I wasn't talking about major commodities. Any more bullshit from you and I'll post an IMPASSE
I wasn't berating anyone. You know i was just responding to what you originally posted so who was trying to berate who Buzz? I didn't see you had changed it until after my 10 minute edit time had passed.
My original post was talking about inflation and i simply pointed out the largest causes of it in the US. Neither of which are major Chinese imports.
Impasse of not, i could care less either way ......
Certain posters are very ignorant and should be ignored.
Mirror Mirror on the wall
Very little.
It's mostly pent-up demand, LOTS of stockpiled cash finally getting spent, and supply chain disruptions.
More money chasing fewer goods = rising prices.
And 5.4% in June and 5% in May and 4.2% in April and 2.6% in March ...... Inflation has been rising steadily since Biden became President. To levels we haven't seen since 2008.
As a result of demand outpacing supply.
That is one reason but not the biggest.
The significantly increased money supply, chasing those fewer goods, is the largest generator of inflation.
Economics 101
You understand that we are still running under Trump's budget and economy, right? Biden is limited on what he can change until he submits his 1st budget.
Never said it wasn't.
You do realize some of Bidens policy changes since he became POTUS are directly responsible for higher inflation right?
Name them, and specify how they effect it.
Lol, unless you are a complete dimwit, you already know the answers. That said, the single biggest one right now is his attempt to appease the green weenie wing of the Democrat party.
Suspended all new oil and gas leasing in the country, stopping the XL pipeline, etc, etc for energy policy. Effectively removing the US from an energy independent position.
Now he's begging OPEC and his buddy Putin to ramp up their energy production
Time to change Joe's drool bucket again .....
I'd be a dimwit if I made a claim without backing it up.
1st one is a lie, plus does not affect inflation. As to the XL pipeline, please explain how Canadian oil effects inflation.
I swear we went through this before. The US has never been energy independent, and anybody who says it is, is just plain lying to you.
And another claim. Please reference my very first sentence in this reply and back up your claim.
Never sell yourself short .....
Not a lie so stop trying to spread disinformation. That shit is getting old with you. As to the XL pipeline i'd be glad to explain the geopolitics of it but like everything that doesn't dance to the tune of your preferred narrative it would totally lost on you.
I swear, your lies just keep stacking up. In 2020 we became a "NET" EXPORTER of of petroleum and therefore energy independent even though some petrol is still imported only because of other agreements. It WAS NOT because we needed to import it. Again, we exported MORE than we import but thanks to drool bucket Bidens executive actions that will no longer be true
Please reference the 100% accuracy of all my statements. Glad i could educate you here a little today.
I didn't make the claim, you did. Multiple claims all with nothing to back them up.
Not a lie so stop trying to spread disinformation.
Biden’s orders direct the secretary of the Interior Department to halt new oil and natural gas leases on public lands and waters, and begin a thorough review of existing permits for fossil fuel development.
Stop spreading disinformation, it is a re-evaluation. Does not effect inflation 1 iota.
We still imported. We were not energy independent.
Don’t Believe the U.S. Energy Independence Hype
Thank you for admitting we were not energy independent , since to be independent , we wouldn't need to import at all. We would be independent of all other countries. Even your links shows we are not independent .
Looking for "begging", nope nowhere to be seen. Your accuracy remains at 0%.
Let us also not forget the whole purpose of this, you were going to show how this affected INFLATION . Instead of that you once again deflected.
Like i said, attempting to have a meaningful conversation with you is a complete waste of time.
I see you've already forgotten that the conversation was about INFLATION.
I like to give the person a chance every once in awhile to have a meaningful conversation but alas ..... have yet to be impressed by one.
Gas in Denver up to $3.69 for regular at Kroger pumps.
Most all costs are up and rising and the drunks in DC continue to print money.
And $ 3.69 for gas is nothing. $4.39 in San Fran last i checked
Glad I went electric!
A sane article on the issue presented ... a 'radical' non-partisan rarity.
Thank you Perrie.
Inflation has wiped out all wage gains in the last 18 months. It's a vicious tax on those who can afford it least. And the government spending money like a blacked out sailor will only make things worse.
Goddamnit people, get vaccinated!
Because that will for sure stop the Delta variant which is hitting the fully vaccinated as well.
It will also stop Democrats from going on a drunken spending spree flooding an already overloaded system with even more money. That is sure to demand and costs down./S
Only modest differences in vaccine effectiveness were noted with the delta variant as compared with the alpha variant after the receipt of two vaccine doses. Absolute differences in vaccine effectiveness were more marked after the receipt of the first dose. This finding would support efforts to maximize vaccine uptake with two doses among vulnerable populations. (Funded by Public Health England.)
Who overloaded the system?
Republicans spent the money on themselves and other millionaire/billionaires.
Democrats are spending the money to save American lives and help the economy.
republicans helping others???????????????????????
Doesn't happen.
They don't give a shit about anyone but themselves and their wallets.