Consumer spending rebounds despite rising October inflation
U.S. consumer spending rebounded in October, rising by a a solid 1.3% despite rising inflation that over the past year has reached the fastest pace in more than three decades.
Inflation
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Discount chain Dollar Tree hiking prices to $1.25
After 35 years of selling goods for a buck, Dollar Tree is boosting its standard price point to $1.25, the company said in a statement Tuesday.
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U.S. GDP slowed sharply in Q3, but big rebound expected in Q4
The expectation is that the economy in the current October-December quarter could grow at the strongest pace this year, with some economists forecast GDP could surge to an 8% rate in the fourth quarter.
Expect to pay more for Christmas trees, experts say
Experts said tree buyers should expect to pay between 10% and 30% more for both live trees and artificial trees this year and also have a smaller selection to choose from.
Prices for Thanksgiving dinner items in Indiana surging this year
The Indiana Farm Bureau is out with its annual Thanksgiving market basket survey and it shows Hoosier shoppers can expect to spend about 12% more at the grocery store this year than in 2020 for the family feast.
Inflation set to spoil holidays for struggling U.S. families
Inflation is eating into recent wage increases, and the timing couldn’t be worse after federal pandemic relief expired for about 7.5 million people.
Americans ramped up retail spending in October
Solid hiring, strong pay raises, and healthy savings for many households are underpinning robust spending. But much of the sales increase reflected higher prices.
Here’s why inflation is so high, and when it might ease
As any American who has bought a carton of milk, a gallon of gas or a used car could tell you, inflation has settled in. And economists are now voicing a more discouraging message.
U.S. consumer prices soared 6.2% in past year, most since 1990
Inflation is eroding the strong gains in wages and salaries that have flowed to America’s workers in recent months, creating political headaches for the Biden administration and congressional Democrats and intensifying pressure on the Federal Reserve.
Producer prices rise 8.6%, matching September record high
The Labor Department reported Tuesday that its producer price index—which measures inflation before it hits consumers—rose 0.6% last month from September, pushed higher by surging gasoline prices.
Fed pulls back economic aid in face of rising uncertainties
Federal Reserve Chair Jerome Powell said the Fed was sticking by its bedrock economic forecast. Yet, the nation’s leading economic figure acknowledged that it isn’t at all clear when or even whether things will play out the way he and other Fed officials hope.
Fed to start reining in economic aid as inflation risk rises
The Fed’s likely decision this week to taper its bond purchases comes as high inflation is bedeviling the U.S. economy for much longer than Federal Reserve Chair Powell and many other officials initially expected.
Consumer goods behemoth P&G warns retailers to expect higher prices
Procter & Gamble, the maker of Pampers diapers, Tide detergent and Crest toothpaste, said it’s raising prices on a range of goods as higher commodity and freight costs are set to take a bite out of its profits.
Resilient shoppers pushed retail sales up 0.7% in September
Americans continued to spend at a solid clip in September even while facing sticker shock in grocery aisles, car lots and restaurants as snarled global supply chains slow the flow of goods.
Inflation rises 5.4% from year ago, matching 13-year high
The unexpected burst of inflation this year reflects sharply higher prices for food and energy, but also for furniture, cars, televisions, and other largely imported goods.
Social Security cost-of-living adjustment largest in decades
The biggest cost-of-living adjustment in 39 years follows a burst in inflation as the economy struggles to shake off the drag of the coronavirus pandemic.
Consumer spending rebounded in August despite COVID
Americans bought more furniture, clothes, and groceries during the month, while the delta variant caused them to pull back on traveling and eating out.
Powell defends Fed policies, says inflation may persist
Federal Reserve Chair Jerome Powell on Wednesday stood behind the ultra-low interest rate policies he has pursued since the pandemic decimated the economy more than 18 months ago. But he acknowledged inflation has stayed higher for longer than he expected.
Powell says spike in inflation lasting longer than expected
Federal Reserve Chairman Jerome Powell said that the unprecedented process of reopening the economy after the COVID shutdowns has resulted in a number of problems that could continue in coming months.
U.S. consumer prices see lowest increase in 7 months
While the upward march of prices appears to have eased last month, economists caution that the same underlying causes remain. Supply chains are still snarled, especially for critical components like computer chips, and consumer demand is easily outpacing supply.
U.S. producer prices jump unprecedented 8.3%
Inflation at the wholesale level saw its biggest annual gain since the Labor Department started calculating the 12-month number in 2010.