Retail sales saw slight increase in August amid inflation
Overall spending has slowed and shifted increasingly toward necessities like food, while spending on electronics, furniture, new clothes and other non-necessities has faded.
Inflation
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U.S. wholesale inflation declined last month to still-high 8.7%
The cost of services—which are increasingly driving consumer inflation—rose 0.4% in August, driven by higher prices for public transportation, car rentals and some financial services.
Wall Street has worst day in more than 2 years on inflation data
The hotter-than-expected inflation reading has traders bracing for the Federal Reserve to ultimately raise interest rates even higher than expected to combat inflation, with all the risks for the economy that entails.
U.S. inflation slows for second month but remains stubbornly high
Sharply lower prices for gas and cheaper used cars slowed U.S. inflation in August for a second straight month, though many other items rose in price, indicating that inflation remains a heavy burden for American households.
As small businesses raise prices, some customers push back
Inflation isn’t only costing small businesses money. It’s costing them customers as well.
Amazon sellers see ‘scary’ holiday season as consumers pull back
Many merchants fear they’ll be forced to cut prices to move a mountain of unsold inventory. It’s an abrupt change from the previous two years when sellers scrambled to get enough products into Amazon warehouses to meet pandemic-fueled demand.
Powell: Fed hoping higher rates won’t mean deep U.S. recession
New research released Thursday concluded that the Federal Reserve will probably have to accept a much higher unemployment rate than it expects—possibly as high as 7.5%—to curb inflation.
Fed’s soft landing hinges on job market doing something strange
The Federal Reserve’s hopes for a “soft landing” rest on a rarely occurring phenomenon: Unemployment will rise not because workers lose their jobs, but because more people without jobs start looking for work.
Job vacancies rise after 3 months of declines, dashing Fed hopes for cooling
The increase that the government reported Tuesday will be a disappointment for Federal Reserve officials, who are seeking to cool hiring by raising short-term interest rates to try to slow borrowing and spending, which tend to fuel inflation.
Stocks fall as Fed chair says rates to remain high ‘for some time’
Federal Reserve leader Jerome Powell acknowledged the rate hikes will hurt the job market and U.S. households, but he also said the pain would be worse if inflation were allowed to fester.
Inflation eased in July, with consumer prices up a still-high 6.3%
According to a Commerce Department report Friday that is closely watched by the Federal Reserve, consumer prices rose 6.3% in July from a year earlier after posting an annual increase of 6.8% in June.
Government revision shows economy shrank 0.6% last quarter
In its previous estimate for the April-June quarter, the government had estimated that the economy had shrunk at a 0.9% rate.
Biden set to announce delayed plan for student-loan relief
The plan, expected to be revaled Wednesday, would likely eliminate student debt entirely for millions of Americans and wipe away at least half for millions more.
Lowe’s becomes latest employer to give workers inflation bonuses
The home improvement retailer said it was offering hourly employees $55 million in bonuses to help offset the sting of inflation, which has remained near 40-year highs all summer.
U.S. retail sales flat in July as households spent more cautiously
Consumers remained wary of spending much on non-essentials: Sales were down 0.5% at department stores and 0.6% at clothing stores.
Walmart easily tops sales expectations as shoppers seek discounts
With inflation hovering near levels not seen in 40 years, higher-income Americans turned to Walmart to cut costs on groceries while its lower-income customers swapped out deli meats for less expensive hot dogs and canned tuna.
Amazon to raise seller fees for holidays amid rising costs
It’s the second fee hike imposed on merchants this year by the online retail behemoth. In April, the company added a 5% “fuel and inflation” surcharge to offset rising gas costs and inflation.
Biden signs major climate, health care legislation
The measure is expected to be paid for by new taxes on large companies and stepped-up IRS enforcement of wealthy individuals and entities, with additional funds going to reduce the federal deficit.
Delayed raises and renovations: Small businesses face new uncertainties
The percentage of small-business owners citing an increasingly uncertain economic outlook rose sharply in July, while overall optimism remains near historic lows, according to data released last week by the National Federation of Independent Business.
Experts: Inflation Reduction Act unlikely to have impact on inflation
The legislation, which is headed for final approval Friday in the House and will then be signed into law, won’t directly address some of the main drivers of surging prices—from gas and food to rents and restaurant meals.