Economists think one key inflation measure is headed back to a 40-year high, much to the chagrin of the Fed

[DigitalDrifter]

Even with increasing interest rates, we just can't seem to shake these skyrocketing inflation stats!

• Economists expect core inflation — which removes food and energy costs — to rebound in September.
• The median forecast sees the one-year rate rising to 6.5%, matching the 40-year high seen in March.
• An increase would make it even harder for the Fed to fight inflation without pulling the US into a recession.

The battle against inflation in the US is far from over, and incoming data is expected to show a difficult slog ahead.

The government is slated to publish Consumer Price Index data for September on Thursday morning, and forecasts aren't encouraging. The core measure — which strips out volatile food and energy prices — is expected to come in at a 0.5%, according to a Bloomberg survey of economists. The gauge is also expected to climb to a 6.5% year-over-year pace. Should the projection prove correct, that will place core inflation back at the March peak and the fastest pace since 1981.

MSN

 

[Meister]

Most economists have relented to the fact that we are heading into a recession as early as the first quarter

 

[pknopp]

I never understood why people treat a bit of recession like the plague anyway.

 

[Meister]

I never understood why people treat a bit of recession like the plague anyway.

Older people are the ones who would suffer the most with their fixed retirement

 

[DigitalDrifter]

I never understood why people treat a bit of recession like the plague anyway.

So you don't mind seeing our economy grind to a halt. Interesting.

 

[Meister]

So you don't mind seeing our economy grind to a halt. Interesting.

Stagnation

 

[Harpy Eagle]

So you don't mind seeing our economy grind to a halt. Interesting.

They are a built in feature of our economic system.

 

[pknopp]

So you don't mind seeing our economy grind to a halt. Interesting.

If that's what it takes, no. And "grind to a halt" is just words. The economy would continue on as it always has.

 

[1srelluc]

Anyone that lived through the bouts of stagflation in the 70s does not want to see a repeat.

 

[pknopp]

Anyone that lived through the bouts of stagflation in the 70s does not want to see a repeat.

I didn't want to live through years of pumping knowing it was going to lead to this.

 

[1srelluc]

I didn't want to live through years of pumping knowing it was going to lead to this.

It's a shame you made it through.

 

[Mac1958]

I didn't want to live through years of pumping knowing it was going to lead to this.

$11 trillion of stimulus over 12 years.

That was risky enough, but then global supply chains fell apart, the Fed didn't act quickly enough, and that was that.

 

[WEATHER53]

The fed is like all government now-punitive and punishing
Them trying to control prices is like Covid loons running and hiding and trying to “govern” the air.

 

[DigitalDrifter]

If that's what it takes, no. And "grind to a halt" is just words. The economy would continue on as it always has.

And it would totally suck. Thus what I meant by grinding to a halt.

 

[busybee01]

Even with increasing interest rates, we just can't seem to shake these skyrocketing inflation stats!

• Economists expect core inflation — which removes food and energy costs — to rebound in September.
• The median forecast sees the one-year rate rising to 6.5%, matching the 40-year high seen in March.
• An increase would make it even harder for the Fed to fight inflation without pulling the US into a recession.

MSN

Because the inflation is being artificially induced. The Fed cannot increase oil supplies. The fact is that how companies do business has already changed. Many companies would rather keep prices high and lose sales than to lower prices to keep sales high.

 

[busybee01]

$11 trillion of stimulus over 12 years.

That was risky enough, but then global supply chains fell apart, the Fed didn't act quickly enough, and that was that.

That has absolutely nothing to do with it. Many companies would rather keep prices high rather than reduce prices.

 

[pknopp]

And it would totally suck. Thus what I meant by grinding to a halt.

Hardly. Who scared you into this position?

 

[CrusaderFrank]

Government prints gobs of money and causes inflation; central bank raises interest rates to throttle the economy.

Charlie Munger tells an audience the inflation wasn't planned and Bloomberg "News" talks about supply chains and wage inflation.

SMH

 

[pknopp]

Government prints gobs of money and causes inflation; central bank raises interest rates to throttle the economy.

It's the same entity that printed the money and raised the rates.

Charlie Munger tells an audience the inflation wasn't planned and Bloomberg "News" talks about supply chains and wage inflation.

SMH

We knew for years the inflation would happen. Well, a few did. I really don't know what to think about the rest. Off with their heads.

 

[struth]

the xiden economy is not going to get better until xiden and the demafasict policies are removed