USA Core Inflation Reaches 40 Year High

[Economy 53,076]

https://www.bnnbloomberg.ca/core-u-s-inflation-rises-to-40-year-high-securing-big-fed-hike-1.1831979

 

US Core Inflation hit a 40 year high of 6.6% 

 

Overall inflation remained stubbornly high at 8.2%

 

Sustained high inflation is stroking fears in markets that the Fed may raise interest rates even higher than previously thought as it tries to prevent inflation expectations from becoming entrenched

[Economy 53,076]

I wonder how restrictive current rates actually are tho. They may seem high compared to what we've had in the last 14 years since 2008 but now that inflation is so high, real rates are still negative...

 

As in if u get a mortgage loan for 6%, u are still paying a negative real interest rate per annum in actual value

[Mr Ricky 9,089]

Unlike the Netherlands where we are at 17% 

[Guest]

3 hours ago, Economy said:

https://www.bnnbloomberg.ca/core-u-s-inflation-rises-to-40-year-high-securing-big-fed-hike-1.1831979

 

US Core Inflation hit a 40 year high of 6.6% 

 

Overall inflation remained stubbornly high at 8.2%

 

Sustained high inflation is stroking fears in markets that the Fed may raise interest rates even higher than previously thought as it tries to prevent inflation expectations from becoming entrenched

We have that in a month ... I hate every single government my country has had in the last 30 years

[Economy 53,076]

1 hour ago, Lukas96 said:

We have that in a month ... I hate every single government my country has had in the last 30 years

I know. I see ur from Argentina and I know a couple from Argentina that talked about the near 100% annual inflation

 

But in developed Nations this is very unusual. 2% is supposed to be a healthy amount and since 2008 especially one good thing about weaker economic growth is that at least inflation has been easier to control so very often it was actually below the 2% target

 

8% is very unusual here and not surprised central banks are panicking and raising rates quickly cuz once inflation starts, u have a short window to control it until it becomes entrenched in expectations and feeds itself

[Economy 53,076]

1 hour ago, Mr Ricky said:

Unlike the Netherlands where we are at 17% 

What?????? 😳😳😳😳😳

[TheBannedShadow 3,424]

1 hour ago, Mr Ricky said:

Unlike the Netherlands where we are at 17% 

Come on, its not that bad over here!

[Economy 53,076]

11 minutes ago, TMM90 said:

Come on, its not that bad over here!

I just searched it up. The figure I got was 14.5%. 🥺

 

I guess the 17% figure user gave was either a different month or perhaps u guys also have 2 main inflation readings (Core vs General)

 

Either way that's insane

[Alannah 2,988]

I went to the gas station yesterday and a bag of candy was $7.00. I had to do a double take.  I work in real estate in the US and while I'm not in the field, I'm terrified for my job. We've gone through two layoffs so far. 

[TheSine 6,974]

I'm screwed. That's all.

[Economy 53,076]

31 minutes ago, Alannah said:

I went to the gas station yesterday and a bag of candy was $7.00. I had to do a double take.  I work in real estate in the US and while I'm not in the field, I'm terrified for my job. We've gone through two layoffs so far. 

I'm a little disappointed with my new job vs my last cuz it pays a bit less and it's more tiring (although it's cleaner and some benefits are actually better)

 

But given uncertainties rn I think if I pass probation Imma keep it and not look elsewhere. I don't wanna be caught being a brand new person the moment the economy tanks 

[PhantomOfTheDance 13,795]

1 hour ago, Alannah said:

I went to the gas station yesterday and a bag of candy was $7.00. I had to do a double take.  I work in real estate in the US and while I'm not in the field, I'm terrified for my job. We've gone through two layoffs so far. 

i was already laid off and i'm pretty sure they covered it up with some lie. it's so hard to get a job right now, i don't know what to do for now.

[Alannah 2,988]

2 hours ago, Stevies Cockatoo said:

i was already laid off and i'm pretty sure they covered it up with some lie. it's so hard to get a job right now, i don't know what to do for now.

I'm so sorry.  The job market right now is unfair in either 1. opportunities or 2. realistic salaries. 

[Fuffy 1,049]

It's already affected my workplace as most of our customer base in the US, the already laid off 40% of the staff because they're worried about the impact of inflation and recession on company profit (it's tech too, not ideal right now). 

I look at our customer data and I can see demand falling despite our efforts. 

I'd rather it be sharp but short, but it looks like a really long slog.

[Economy 53,076]

6 minutes ago, Gogo Yubari said:

It's already affected my workplace as most of our customer base in the US, the already laid off 40% of the staff because they're worried about the impact of inflation and recession on company profit (it's tech too, not ideal right now). 

I look at our customer data and I can see demand falling despite our efforts. 

I'd rather it be sharp but short, but it looks like a really long slog.

The problem is that in order for inflation to come down, demand has to drop down to an equilibrium of productive capacity to meet demand within the economy

 

Because of disruptions caused by pandemic, China still doing shutdowns, and now war on Ukraine, the economies maximum productive capacity is lower than normal, as as a result you get high inflation pressures at a lower level than normal and for them to cool the inflation it will hurt the economy because they have to make consumers pull back

 

It's a no win. There's no way to adress it without pain either way