Inflation hits 8.3% from a year ago

Rev 6:6 NAS “And I heard something like a voice in the center of the four living creatures saying, “A quart of wheat for a denarius, and three quarts of barley for a denarius; and do not damage the oil and the wine.”

Important Takeaways:

  • Inflation barreled ahead at 8.3% in April from a year ago, remaining near 40-year highs
  • The consumer price index accelerated 8.3% in April, more than the 8.1% estimate and near the highest level in more than 40 years.
  • Core CPI, which excludes food and energy, also was higher than expected, rising 6.2%.
  • Shelter costs, which comprise about one-third of the CPI, rose at their fastest pace since 1991.
  • Inflation-adjusted earnings continued to decline for workers, falling 2.6% over the past year due to the surging cost of living.

Read the original article by clicking here.

A Nation of Inflation soars to crisis levels

Rev 6:6 NAS “And I heard something like a voice in the center of the four living creatures saying, “A quart of wheat for a denarius, and three quarts of barley for a denarius; and do not damage the oil and the wine.”

Important Takeaways:

  • Inflation Nation: Gas Hits New Record High as Cost of Living Soars to Crisis Levels
  • According to AAA, the national average for a gallon of regular gasoline is hitting a new record high at $4.37, up 23 cents from last month. Some analysts predict an average price as high as $4.50 by summer.
  • And it’s not just fuel.
  • According to the latest Consumer Price Index report, food-at-home prices have risen 10 percent in the last 12 months, marking the largest 12 month increase since 1981. Prices for meat and eggs increased more than 13 percent over the last year, while beef rose 16 percent. What’s more, the USDA predicts grocery store prices will jump another five to six percent this year.
  • On Wall Street, stocks deepened their losses Monday, sending the S&P 500 to its lowest close in more than a year.

Read the original article by clicking here.

Fast take: U.S. consumer inflation muted, just don’t buy a used car

By Dan Burns

(Reuters) – U.S. consumers on balance paid only a little bit more for goods and services last month as supply chain disruptions that contributed to a bump up in inflation over the summer began to ease, a welcome respite for the millions who remain unemployed.

While that easing pressure on pinched consumers might offer a benefit to Republican President Donald Trump’s reelection prospects against Democratic challenger Joe Biden, it does come with a big “on the other hand” caveat: It is the latest sign of fading momentum in the rebound from this spring’s record-setting economic slump.

A bit of inflation typically is an indication of strengthening demand, an encouraging signal that consumers have reliable sources of income allowing them to contribute to growing an economy that hinges extensively on their spending. But with roughly 11 million still out of work and desperate for a new round of COVID-19 relief from Washington, September’s modest uptick in prices is no such signal.

Here’s Jefferies chief financial economist Aneta Markowska’s take: “After several months of above-trend gains, price pressures are finally normalizing. Both headline and core CPI increased by just 0.2% (month-to-month) in September, with the underlying details painting an even weaker picture.”

In fact, she notes prices would have been unchanged but for one thing: The largest monthly increase in used car and truck prices since 1969. And with cash-strapped consumers increasingly reliant on their own transport to get to an on-site job, that’s no welcome development.

Food price increases, too, are moderating after a big run up in the spring, but where you eat makes a big difference.

If eating at home, as millions without work have no choice but to do, then food prices were lower for a third straight month.

If eating out, though, as more consumers are doing as restaurants continue to reopen around the country, prices shot up by the most in 12 years last month.

(Reporting by Dan Burns; Editing by Andrea Ricci)