from Styxhexenhammer666
U.S. Inflation Increases Moderately; Consumer Spending Boosts Q2 Outlook
by Lucia Mutikani
Yahoo! Finance
The report from the Commerce Department on Friday, which also showed strong consumer spending last month, offered some relief to financial markets spooked by worries of stagflation after data on Thursday showed inflation surging and economic growth slowing in the first quarter.
“Markets should breathe a sigh of relief this morning,” said Chris Zaccarelli, chief investment officer at Independent Advisor Alliance. “Given the elevated levels of inflation, and this is the new normal for 2024, the market is going to need to get over hopes for Fed rate cuts.”
Consumer Inflation Expectations Unexpectedly Climb
by John Carney
Breitbart.com
The rate of inflation expected by American households climbed in April, the latest signal that the Fed’s progress in bringing down inflation has stalled.
The University of Michigan’s survey of consumer sentiment showed Friday that the expected rate of inflation in the year ahead rose to 3.2 percent in April from 2.9 percent a month earlier. The longer-run expected inflation rate rose to 3.0 percent from 2.8 percent.
Inflation stopped falling in the second half of last year and has accelerated this year. The personal consumption price index rose at an annualized rate of 3.4 percent in the first three months of the year, a big jump from the 1.8 percent recorded in the last quarter of 2023. The core rate of inflation, which excludes food and energy, rose at a 3.7 percent annualized rate, up from two percent at the end of last year.
Inflation Declined in March, But Remains High
by William J. Luther
The American Institute for Economic Research
Inflation is once again on the decline, new data from the Bureau of Economic Analysis (BEA) show. The Personal Consumption Expenditures Price Index (PCEPI), which is the Federal Reserve’s preferred measure of inflation, grew at a continuously compounding annual rate of 3.9 percent in March. It grew at an annualized rate of 5.1 percent in January and 4.0 percent in February.
The renewed disinflation is certainly better than the alternative. But it is nonetheless difficult to celebrate: inflation remains well above the Fed’s 2-percent average inflation target. Prices today are 8.9 percentage points higher than they would have been had they grown at an annualized rate of 2.0 percent since January 2020.
Why Do My Groceries Cost So Much?
Giant corporations want to keep their taxes low and the prices we pay high. We can’t let them win.
by Sulma Arias
NC Newsline
In 2004, I was a single mom raising three daughters on my own. I worked three jobs, including an overnight shift as a translator at our local hospital, to make ends meet. Every time I stood in line at the supermarket, I worried about what I would have to put back on the shelf to stay within our weekly $100 food budget.
My daughters are all grown now. But whenever I’m buying groceries, I still get that horrible feeling in the pit of my stomach as I remember not knowing if we would have enough to eat, and how much — or how little — I could provide for my family with $100.
Prices for all of us have gone way up since COVID, and $100 now buys about $65 worth of groceries compared to five years ago. This puts a huge bite on working families, because we spend most of our income every month — as much as 90 percent — on food and other necessities. So when prices rise, we hurt the most.
Investors Are More Worried About Inflation Than a Weakening Economy
by Josh Schafer
Yahoo! Finance
New data revealed a slowdown in the US economy in the first three months of the year. But even more concerning to investors was that inflation accelerated faster than Wall Street had expected, sending shockwaves through markets on Thursday.
The latest data from the Bureau of Economic Analysis showed the “core” Personal Consumption Expenditures (PCE) index, which excludes the volatile food and energy categories, grew by 3.7% year over year in the first quarter, above estimates for 3.4% and significantly higher than 2% gain seen in the prior quarter.
This marked the first quarterly increase in the Fed’s preferred inflation gauge in a year, underscoring concerns that the central bank may not cut interest rates as quickly as it has projected.
Why Experts Say Inflation is Relatively Low but Voters Feel Differently
by Ailsa Chang and Mia Venkat
NPR
A lot goes into planning a personal budget – and the price of food and how it fluctuates with inflation can be a big part of that.
According to the U.S. Department of Agriculture, food prices rose by 25 percent from 2019 to 2023. And a report from Purdue University found that a majority of consumers expect food prices to keep rising in the coming year.
Are food prices as bad as consumers think?
All Things Considered host Ailsa Chang spoke with Joseph Balagtas, a professor of agricultural economics at Purdue University and the lead author of that report.
People Are Really Annoyed About the Price of Fast Food
Fast food is getting more expensive, and Americans are annoyed about it.
by Grace Dean
Business Insider
Fast-food chains have raised prices drastically in recent years — blaming everything from rising food costs and labor shortages to Russia’s invasion of Ukraine.
Because of this, some fast-food customers are starting to cut back and are opting to eat at home or switch to dine-in options, which are increasingly viewed as better value for money.
Sara Senatore, a restaurant analyst at Bank of America, told Business Insider that fast-food restaurants historically increased prices by about 2% yearly. At some restaurants in 2022 and 2023, they went up by double digits, she said.
As general inflation comes down, including for groceries, Senatore expects consumers to be even “less tolerant” of the price increases in the restaurant industry.
Breitbart Business Digest: Inflation is Too Hot for the Fed to Cut Despite Sluggish Growth
by John Carney
Breitbart.com
The GDP Report Snuffs Out the Dream of a Soft Landing
The pace of economic growth in the first three months of the year was far more sluggish than anyone expected—and inflation was much higher.
The report suggests that the soft-landing scenario—solid growth and steadily falling inflation—is dead. We’re now looking at a no-landing or possibly even a hard landing.
Gross domestic product (GDP), the government’s official scorecard for the economy, grew at a paltry 1.6 percent annual pace in the first quarter. That’s a big slowdown from the 3.4 percent pace in the fourth quarter of last year and a reminder that the pace of economic growth can turn suddenly and unexpectedly.
85% of New Yorkers Say Grocery Costs Are Rising Faster Than Their Income
by Olivia Rondeau
Breitbart.com
A whopping 85 percent of New Yorkers say that the cost of food is rising faster than their income in a poll conducted amid the grocery affordability crisis.
The poll, released by No Kid Hungry New York on Tuesday, also found that nearly half — 47 percent — of respondents are having a “much harder” time affording food.
A significant chunk of people have altered their shopping habits due to price inflation, with 51 percent going to a less convenient store because it was cheaper and 26 percent spending more than 30 minutes searching for coupons and discounts.
The choices consumers are making have changed as well, with over half of the respondents saying they’ve purchased less protein — or none at all — to be able to afford groceries, and just under half saying they bought less or no fresh produce.
Inflation Surge Has Put Off Rate Cuts, Hurt Stocks. Will it Still Slow in 2024?
by Paul Davidson
USA Today
Since a key inflation report this month showed an unexpected surge in consumer prices, hopes for a flurry of interest rate cuts this year have dimmed, the stock market has tumbled and an upbeat mood on the economy has soured a bit.
But inflation is still on course to gradually ease this year and in 2025, top forecasters say. The recent price acceleration largely centers on a few categories, such as rent, car insurance and medical care.
While some economists say the cost of such services will continue to rise sharply in 2024, others expect a slowdown that could still allow the Federal Reserve to lower interest rates more than markets now anticipate.