US inflation reaches 2.9%, highest in 6 years

[McRocket]

'Consumer prices rose in June from a year earlier at the fastest pace in more than six years, lifted by more expensive gas, car insurance, and higher rent.

The Labor Department said Thursday that the consumer price index ticked up just 0.1 percent in June. But inflation jumped 2.9 percent from a year earlier, the largest annual gain since February 2012. Core prices, which exclude the volatile food and energy categories, rose 0.2 percent in June and 2.3 percent from a year earlier.'

US inflation reaches 2.9%, highest in 6 years


And these tariffs/trade war threats are only going to raise that more.

And remember, the Fed's stated goal for inflation is only 2%. Any more than that, and they start thinking about raising rates.
And with this low interest-based economy...that could be bad news.

Inflation hits Fed’s 2% target, PCE shows, in prelude to faster rise in U.S. interest rates

 

[McRocket]

United States Inflation Rate | 1914-2018 | Data | Chart | Calendar

United States Average Monthly Prime Lending Rate | 1950-2018 | Data | Chart

 

[imawhosure]

'Consumer prices rose in June from a year earlier at the fastest pace in more than six years, lifted by more expensive gas, car insurance, and higher rent.

The Labor Department said Thursday that the consumer price index ticked up just 0.1 percent in June. But inflation jumped 2.9 percent from a year earlier, the largest annual gain since February 2012. Core prices, which exclude the volatile food and energy categories, rose 0.2 percent in June and 2.3 percent from a year earlier.'

US inflation reaches 2.9%, highest in 6 years


And these tariffs/trade war threats are only going to raise that more.

And remember, the Fed's stated goal for inflation is only 2%. Any more than that, and they start thinking about raising rates.
And with this low interest-based economy...that could be bad news.

Inflation hits Fed’s 2% target, PCE shows, in prelude to faster rise in U.S. interest rates

The Fed is responsible for keeping that under control, not Trump. You want to cut inflation? Cut Social programs, plain and simple-)

 

[Norman]

The FED printing shekels at ever increasing rates and you blame Trump...

 

[MisterBeale]

United States Inflation Rate | 1914-2018 | Data | Chart | Calendar

United States Average Monthly Prime Lending Rate | 1950-2018 | Data | Chart

 

[Missouri_Mike]

Printing money and quantitative easing for eight years is a problem? Who knew.

 

[imawhosure]

Printing money and quantitative easing for eight years is a problem? Who knew.

Yes, printing money is baaaaaaaaaaaad, without an increase in goods and services. Now, we can't really blame Obysmal, since the Fed is supposed to be independent. But notice, under Obysmal, the put in all this easing, keeps rates low, and as soon as Trump arrives, they raise rates, and take away the party punch.

And yet, his economy grooooooooooows without special help, now doesn't it! He did it by himself by pushing an agenda, didn't he!

Help me out here------->what do they call it when they GIVE SPECIAL CONSIDERATION to minorities? You know, they put them ahead of everyone and protect them! Well, that was the OBYSMAL PRESIDENCY, and it STILL was a failure.

That is what we should start calling the Obysmal Presidency, whatever the name is that puts those LESS QUALIFIED, in front of the more QUALIFIED, then protects them!

What is the name of that program, help me out, and TAG OBYSMAL with it-)

 

[my2¢]

The fed is expected to raise interest rates, it's usual undertaking to fight inflation. With Obama's deficit spending I was expecting for inflation to hit way before now, but economic slow growth kept it in check. Was a bit grateful for that.

Concerning inflation in general, I remember in the early 70's getting a haircut and listening to a couple of old conservatives who were sitting in the shop. They were talking about what the country needed was a good old fashion depression. In next few days mulling their opinion over I came to see the situation as one where they had already gotten theirs, all they wanted now was to protect it. I on the other hand was just starting out, had nothing, and so desired a more booming economy with growth and opportunity with less regard towards inflation.

If inflation is controlled and kept under 4% I think that'll be a happy median which both young and old can live with. If we have a repeat of the 70's though I'll be of the same thought as those old farts way back when sitting in a barbershop 21 miles west of Cleveland.

 

[eagle1462010]

Instant View: Fed raises rates again, sees two more hikes in 2018

In raising its benchmark overnight lending rate a quarter of a percentage point to a range of between 1.75 percent and 2 percent, the Fed dropped its pledge to keep rates low enough to stimulate the economy “for some time” and signaled it would tolerate above-target inflation at least through 2020.

HEIDI LEARNER, CHIEF ECONOMIST, SAVILLS STUDLEY, SAVILLS PLC, NEW YORK

“The real surprise is that the Fed signaled its intention to hike an additional two times this year after today. That’s surprising since GDP growth for the year was only revised up by 0.1 percent to 2.8 percent, and PCE inflation is forecast at 2.1 percent, really in line with the Fed’s 2 percent target.

“They kept the phrase that policy remains accommodative in the statement but if we do get to 2.4 percent by year-end we’ll only be 50 bps below what the Fed sees as the longer-run rate.

Not a large reaction from bonds at this point, just 4 bps or so higher in yield across the curve

 

[JGalt]

Inflation always increases with a growth in the GDP. It's just basic economics.

Why does inflation increase with GDP growth?

 

[Dont Taz Me Bro]

'Consumer prices rose in June from a year earlier at the fastest pace in more than six years, lifted by more expensive gas, car insurance, and higher rent.

The Labor Department said Thursday that the consumer price index ticked up just 0.1 percent in June. But inflation jumped 2.9 percent from a year earlier, the largest annual gain since February 2012. Core prices, which exclude the volatile food and energy categories, rose 0.2 percent in June and 2.3 percent from a year earlier.'

US inflation reaches 2.9%, highest in 6 years


And these tariffs/trade war threats are only going to raise that more.

And remember, the Fed's stated goal for inflation is only 2%. Any more than that, and they start thinking about raising rates.
And with this low interest-based economy...that could be bad news.

Inflation hits Fed’s 2% target, PCE shows, in prelude to faster rise in U.S. interest rates

They do need to gradually raise interest rates. They are way too low and have been for too many years

 

[mikegriffith1]

'Consumer prices rose in June from a year earlier at the fastest pace in more than six years, lifted by more expensive gas, car insurance, and higher rent.

The Labor Department said Thursday that the consumer price index ticked up just 0.1 percent in June. But inflation jumped 2.9 percent from a year earlier, the largest annual gain since February 2012. Core prices, which exclude the volatile food and energy categories, rose 0.2 percent in June and 2.3 percent from a year earlier.'

US inflation reaches 2.9%, highest in 6 years


And these tariffs/trade war threats are only going to raise that more.

And remember, the Fed's stated goal for inflation is only 2%. Any more than that, and they start thinking about raising rates.
And with this low interest-based economy...that could be bad news.

Inflation hits Fed’s 2% target, PCE shows, in prelude to faster rise in U.S. interest rates

Oh, so tariffs cause inflation???!!! Really??? What's China's inflation like, hey? I ask because China imposes high tariffs on a wide range of foreign products.

China: monthly inflation rate 2018 | Statistic

 

[PredFan]

Lefties know nothing at all about economics.

 

[JGalt]

Lefties know nothing at all about economics.

"Oh dear. I don't like chopping firewood because it makes so much icky sawdust..."

 

[Norman]

Lefties know nothing at all about economics.

Untrue, I have never seen anyone pull of parasitism better than leftists. Vampires would have a difficult time defeating them.

 

[BuckToothMoron]

'Consumer prices rose in June from a year earlier at the fastest pace in more than six years, lifted by more expensive gas, car insurance, and higher rent.

The Labor Department said Thursday that the consumer price index ticked up just 0.1 percent in June. But inflation jumped 2.9 percent from a year earlier, the largest annual gain since February 2012. Core prices, which exclude the volatile food and energy categories, rose 0.2 percent in June and 2.3 percent from a year earlier.'

US inflation reaches 2.9%, highest in 6 years


And these tariffs/trade war threats are only going to raise that more.

And remember, the Fed's stated goal for inflation is only 2%. Any more than that, and they start thinking about raising rates.
And with this low interest-based economy...that could be bad news.

Inflation hits Fed’s 2% target, PCE shows, in prelude to faster rise in U.S. interest rates

Funny thing about inflation- you want it when you don’t have it at all, but when when you get it, it often comes faster and harder than you want. IMO- The Feds don’t know what they are doing and in the end they will be trapped by rising interest rates/inflation and a falling stock market.

 

[PredFan]

Lefties know nothing at all about economics.

Untrue, I have never seen anyone pull of parasitism better than leftists. Vampires would have a difficult time defeating them.

Funny and agree but you don't have to know anything about economics to be a parasite.

 

[BuckToothMoron]

The FED printing shekels at ever increasing rates and you blame Trump...

Actually the Fed is not printing anymore, they are tightening money supply thru higher rates and shrinking their balance statement.

 

[whitehall]

Yeah but Barry Hussein was president six years ago and we had inflation and a negative GDP to show for it. I don't recall democrats complaining.