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Old 08-06-2018, 12:24 AM
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Default Inflation hits 6-year high, wiping out wage gains for the average American

Inflation hits 6-year high, wiping out wage gains for the average American - Chicago Tribune

Quote:
Prices rose at their highest clip since 2012 over the past year, the Labor Department reported Thursday.

The 2.9 percent inflation for the 12-month period ending in June is a sign of a growing economy, but it's also a painful development for workers, whose tepid wage gains have failed to keep pace with the rising prices.

The cost of food, shelter and gas have all risen significantly in the past year. Gas skyrocketed more than 24 percent, rent for a primary residence jumped 3.6 percent and meals at restaurants and cafeterias rose 2.8 percent.

Prices have risen roughly at the same rate as wages, erasing any gains workers may have hoped to realize via bigger paychecks.
Quote:
"While the labor market remains historically tight, the pace of U.S. inflation is now outpacing wage gains late in the business cycle," said Joe Brusuelas, chief economist at RSM, an audit and advisory firm. "The U.S. is now ensnared in a three front trade war which will in the near to medium term result in higher prices."

For workers, more pain may be coming, as economists are concerned that prices could rise further due to President Trumps tariffs on many foreign imports. Trump put a 20 tariff on foreign washing machines earlier this year, and the inflation report Thursday showed more than a 13 percent spike in laundry equipment over the same period last year.
Quote:
"Expect rising transportation costs to start getting passed on to us, along with the tariff induced jump in costs," said Peter Boockvar, chief investment officer of Bleakley Advisory Group.

Wage growth has been lackluster since the Great Recession. Recently, unemployment fell to one of the lowest levels since 1969 and business leaders keep complaining they can't find enough workers. Typically, companies raise wages sharply in this kind of environment, but average hourly earnings are still stuck below 3 percent, a low level historically.

Federal Reserve Chair Jerome Powell has called it "a puzzle" why wages aren't rising faster. In an interview Thursday with National Public Radio, Powell said "we're starting to see" some pick up in wages.
Quote:
"We now just in the last year or so, we have seen wages move up," he said.

Rising inflation puts the Fed in a difficult position. After years of low inflation, the Fed wants to see prices rises a bit more because it's a sign of a healthy economy, but the Fed doesn't want to see the economy overheat, which typically happens when inflation jumps too quickly.

The Fed focuses most on measures of inflation that exclude energy and food, which can be volatile. The Consumer Price Index excluding food and energy rose 2.3 percent in the past 12 months through June. But most Americans are more concerned about whether their pay is keeping up with the cost of living.

"We really close to our target" on inflation, Powell said Thursday. "We want inflation to be symmetrically around 2 percent, so just kind of reaching up and touching it once doesn't fulfill that goal."
Told ya.
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Old 08-06-2018, 07:37 AM
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Default Re: Inflation hits 6-year high, wiping out wage gains for the average American

So, you prefer Obama's stalled out economy? Of course you do, dependents on the Federal government are the Democrat core constituents.
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Old 08-06-2018, 10:41 AM
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Default Re: Inflation hits 6-year high, wiping out wage gains for the average American

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Originally Posted by AZRWinger View Post
So, you prefer Obama's stalled out economy? Of course you do, dependents on the Federal government are the Democrat core constituents.
LOL Seriously ^^^? Defending the current President by putting the blame on Obama - 16 months out of office - puts your credibility in jeopardy. Aided by an ad hominem, doesn't help either.
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Old 08-06-2018, 10:44 AM
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Default Re: Inflation hits 6-year high, wiping out wage gains for the average American

2.9%!!!!...The sky is falling!!!!...

Truth be told, it's was 2.8% last month and 2.9% this month, but before that, it's been below 2.5% for the last 16 MONTHS, so the Left is pushing this stuff over data from the last SIXTY days...and that's it...

Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Ave
2018 2.1 2.2 2.4 2.5 2.8 2.9
2017 2.5 2.7 2.4 2.2 1.9 1.6 1.7 1.9 2.2 2.0 2.2 2.1 2.1
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Old 08-06-2018, 11:19 AM
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Default Re: Inflation hits 6-year high, wiping out wage gains for the average American

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Originally Posted by cnredd View Post
2.9%!!!!...The sky is falling!!!!...

Truth be told, it's was 2.8% last month and 2.9% this month, but before that, it's been below 2.5% for the last 16 MONTHS, so the Left is pushing this stuff over data from the last SIXTY days...and that's it...

Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Ave
2018 2.1 2.2 2.4 2.5 2.8 2.9
2017 2.5 2.7 2.4 2.2 1.9 1.6 1.7 1.9 2.2 2.0 2.2 2.1 2.1
Thank you for proving my point in my response above.

Consider the Tariff Policy of President Trump, which seems to me to be related to the rise if inflation. You are correct, time will tell, but we need to consider POTUS is not the only actor to impact inflation or other economic matters. He can lead, but such issues are the duty of The Congress - and the current Congress is too concerned with keeping the majority, than doing their job.
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Old 08-06-2018, 11:33 AM
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Default Re: Inflation hits 6-year high, wiping out wage gains for the average American

The Federal Reserve raised the prime lending rate exactly once during the 8 years of the Obama admin, yet they've raised it something like 4 times since Trump took office, with promises to raise it again a couple of times in the next year.

Now why would they do that knowing that it will affect the inflation rate? Hmmm.
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Old 08-06-2018, 12:19 PM
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Default Re: Inflation hits 6-year high, wiping out wage gains for the average American

If one has only gotten a 2.9% increase in their wages in 6 years..... ah, I don't think I need to finish that statement....
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Old 08-06-2018, 05:05 PM
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Default Re: Inflation hits 6-year high, wiping out wage gains for the average American

Quote:
Originally Posted by Wry Catcher View Post
LOL Seriously ^^^? Defending the current President by putting the blame on Obama - 16 months out of office - puts your credibility in jeopardy. Aided by an ad hominem, doesn't help either.
I note the absence of any attempt to answer the question posed. What type of economy do you prefer? One with robust growth and modest inflation or a moribund economy with low growth fostering record levels of dependence on the Federal welfare state?

Thanks for the reminder it's only taken Trump 16 months to get the economy moving again.
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Old 08-06-2018, 05:37 PM
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Default Re: Inflation hits 6-year high, wiping out wage gains for the average American

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Originally Posted by AZRWinger View Post

So, you prefer Obama's stalled out economy?
Fake news.....

Obama inherited a **** storm from Bush, Donnie got a complete different deal....


Not even close....
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Old 08-06-2018, 05:41 PM
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Default Re: Inflation hits 6-year high, wiping out wage gains for the average American

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Originally Posted by AZRWinger View Post
I note the absence of any attempt to answer the question posed. What type of economy do you prefer? One with robust growth and modest inflation or a moribund economy with low growth fostering record levels of dependence on the Federal welfare state?

Thanks for the reminder it's only taken Trump 16 months to get the economy moving again.
This is what cherry picking looks like above.....

~ Go back to before Obama won in 08 with two unfunded wars, a banking industry meltdown, a stock market crash and the worst job market since Clinton....

Wake up and tell the truth......
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