from LifeWorthLiving
Trump’s New Tariffs Could Create Higher Gas Prices
And higher gas prices will make it more expensive to move goods around the country.
by Eric Boehm
Reason.com
President-elect Donald Trump’s threat to slap huge new tariffs on all imports from Canada and Mexico will likely cause gas prices to rise in the United States.
That’s because Canada is America’s largest source of petroleum imports, according to the Department of Energy’s data. The U.S. has been importing about 4 million barrels of oil per day from Canada in recent months, thanks to the opening of a new pipeline. Mexico is also a major supplier to the U.S. market, accounting for about 10 percent of all crude oil imports in 2022.
If tariffs make those imports 25 percent more expensive (or if the flow of oil across the border slows or ceases in response to the new trade barriers Trump wants to erect), prices are likely to rise through the rest of the supply chain, including at the pump.
Bidenflation Survey: 44% of Americans Hosting Thanksgiving Concerned About Cost
by Hannah Knudsen
Breitbart.com
Forty-four percent of Americans hosting Thanksgiving are concerned about the cost of the event as they continue to face inflation in the Biden-Harris era, according to Deloitte survey data.
The survey found that, due to rising costs, three of ten hosts are “leaving more friends or relatives off the invite list this year.”
The survey found that 51 percent of hosts making less that $50k are most likely to be concerned about cost, and 41 percent in this bracket said they they will invite fewer guests than they have in the past.
Half making between $50k and $99k said they are concerned about the cost associated with hosting, and 34 percent in that bracket said they will invite fewer guests.
Inflation Re-Accelerates Despite Plunging Gasoline Prices as “Core Services” PCE Price Index Hits Seven-Month High
by Wolf Richter
Wolf Street
Core services inflation is the biggie, and it’s going the wrong way. The Fed is already talking down the pace of rate cuts.
Inflation has been in services and is still in services, it has become sticky in services, and recently it has been re-accelerating in services. Services dominate consumer spending. And durable goods prices rose for the second month in a row, after big drops. But gasoline prices continued to plunge, and food prices ticked up just a little, according to the PCE price index by the Bureau of Economic Analysis today. This is the data the Fed prioritizes as yardstick for its 2% inflation target.
Three of the four major metrics accelerated in October even on a year-over-year basis: the overall PCE price index to +2.3% (blue), the “Core” PCE price index to +2.8%, (red), and the “Core Services” PCE price index to +3.9% (gold), while the durable goods PCE Price index started rising from the ashes and became less negative (green).
‘Black Friday’ Deals Target Inflation-Weary U.S. Consumers
by John Biers
Yahoo! Finance
Inflation has stabilized after dramatic price spikes during the Covid pandemic years, but consumers are still feeling the pinch — meaning bargain-hunting strategies such as grabbing early giveaways and waiting for last-minute steals are in vogue.
Compared with other years, holiday shoppers in 2024 are “even more preoccupied and very focused around value and discounts,” said Vivek Pandya, leading insights analyst at Adobe Digital Insights.
Tech Stocks Spark Europe Market Rebound; Inflation Data Looms
by Reuters
Kitco
Nov 28 (Reuters) – Tech stocks spearheaded a rebound in European shares on Thursday, after a two-day slump fuelled by worries over potential U.S. tariffs and France’s economic and political challenges, with investors now closely watching inflation reports for clues on the future trajectory of interest rate cuts.
The pan-European STOXX 600 (.STOXX), index was up 0.4% to 507.23 points. Trading volumes were expected to be light with the U.S. market shut for Thanksgiving holiday.
The tech sector (.SX8P), climbed nearly 1%, logging its best day in one week, as chip stocks gained after Bloomberg reported the U.S. administration’s China chip curbs could be less severe than expected.
Russian Central Bank Takes Desperate Stand to Halt Collapsing Ruble and Fierce Inflation
by Christiaan Hetzner
MSN
In a bid to stave off red-hot inflation, Russia’s central bank halted all foreign currency purchases for the remainder of the year, while actively selling Chinese yuan, in hopes of propping up the ruble. The ruble—currently worth a fraction of a penny—hit lows on Wednesday not seen since the start of the Ukraine war.
The aim is to put a floor underneath the ruble and clamp down on further price pressure leaking into the country through the rising cost of imported goods. The Russian economy is also suffering from a lack of foreign investment caused by Western government sanctions that ban companies from doing business with Russia. With most Russian financial institutions now cut off from trading in dollars, this starves the country of a steady supply of U.S. currency reserves.
Breitbart Business Digest: Inflation is Making a Fool of the Fed
by John Carney
Breitbart.com
Inflation Is Rising Again
The acceleration of inflation since the Federal Reserve cut interest rates in September suggests that the move was a mistake.
The personal consumption expenditure (PCE) index rose 2.3 percent over the 12 months through October, the Bureau of Economic Analysis said on Wednesday, up from 2.1 percent through September. Core PCE prices, a measure that excludes food and energy, rose 2.8 percent, the biggest year-over-year increase since April.
The month-to-month inflation figures do not look alarming until they are annualized. The 0.2 percent monthly gain in headline PCE inflation annualizes to 2.9 percent, meaning that would be the rate of inflation if it continued to run at this pace for a year. That’s a big increase from the 2.1 percent one-month annualized pace recorded in September and a long way from the Fed’s two percent target.
Gold Trims Gains On U.S. Inflation Data, Finds Support in Softer Dollar
from Kitco
Nov 27 (Reuters) – Gold rose on Wednesday, rebounding from an over one-week low hit in the previous session, on a weaker dollar, but trimmed earlier gains after data showed stalled inflation progress, hinting that the U.S. Federal Reserve might be cautious on further rate cuts.
Spot gold was up 0.3% at $2,638.90 per ounce, as of 01:41 p.m. ET (1841 GMT). U.S. gold futures settled 0.7% higher at $2,639.90.
U.S. markets to be closed on Thursday in observance of the Thanksgiving holiday.
U.S. consumer spending increased solidly in October, but progress lowering inflation appears to have stalled in the past months.
Fed’s Favored Inflation Metric Ticked Up to Six-Month High In October
Core inflation climbed to a multi-month high as expected in October, according to data released Tuesday morning, as questions swirl about the sticky price increases for American consumer with the potential inflationary effects of the tariffs backed by President-elect Donald Trump ahead.
by Derek Saul
Forbes
[…] Surprising Fact
Though the core PCE metric is about half of its 2022 peak of 5.6%, it’s still higher than it was for all of 1994 to 2020, evidence of the yearslong price increases coming out of the depths of the COVID-19 pandemic.
Key Background
The PCE index tracks how much Americans actually spend on goods and services in a given month.
Fed’s Preferred Inflation Gauge Rises to 2.3% Annually, Meeting Expectations
The personal consumption expenditures price index increased 0.2% on the month and showed a 12-month inflation rate of 2.3%, both in line with expectations.
by Jeff Cox
CNBC.com
Inflation edged higher in October as the Federal Reserve is looking for clues on how much it should lower interest rates, the Commerce Department reported Wednesday.
The personal consumption expenditures price index, a broad measure the Fed prefers as its inflation gauge, increased 0.2% on the month and showed a 12-month inflation rate of 2.3%. Both were in line with the Dow Jones consensus forecast, though the annual rate was higher than the 2.1% level in September.
Excluding food and energy, core inflation showed even stronger readings, with the increase at 0.3% on a monthly basis and an annual reading of 2.8%. Both also met expectations. The annual rate was 0.1 percentage point above the prior month.