Despite the highest inflation rates in 40 years, Apple chose not to raise prices on its gadgets. More bizarre, the consumer price index suggests smartphones are 20% cheaper than a year ago.
Inflation remained near a 40-year high due to a jump in the cost of food and shelter. But that might not mean the Federal Reserve will get more aggressive when it comes to monetary policy.
The Bank of Canada’s expansionary monetary policy in 2021 is an important source of the high inflation we are experiencing today.
An economist provides insight into how inflation is measured, where it comes from and how it is impacting Canadians and the economy at large.
Monthly figures mightn’t be more accurate, and they will often be misleading.
Asked how high an inflation rate Australia should prepare to tolerate, three of the 48 economists nominated 8% or higher. Seven expected inflation to fall without the need for further action.
Never, in the three decades the Reserve Bank has been targeting inflation, has it been tested by prices rising in unison like this.
Inflation has hit 6.1%, and the rate of inflation on necessities is 7.6%. Bringing it down will require still higher interest rates and exquisite judgement in order to avoid a recession.
Soaring inflation in the US has been driven in part by large increases in the price of groceries – a burden that falls disproportionately on lower-income families.
The rich history of UK consumer culture has been captured in the composition of the ‘basket of goods’ used to measure inflation.
A bigger-than-expected jump in inflation means the Fed may have to get more aggressive about interest rate hikes. An obscure economic indicator suggests it has room to do so.
Lower real living standards now represent the price of being in paid work.
The buying power of wages began slipping mid last year year. The wages share of national income has been sliding since 2016.
Why raise rates now, for the first time in more than a decade? If the Reserve Bank isn’t careful, too many more rate hikes like this might help bring on a recession.
The best way to manage the economy is though an array of tools. Interest rates are just one.
Inflation is well outside the Reserve Bank’s target band and higher than it has been for two decades.
Of the news on prices, wages, interest rates and unemployment, only the unemployment update looks set to be positive for the Coalition.
The consumer price index, which measures everything from the price of peanut butter to gasoline, jumped at an annualized pace of 8.5% in March 2022 as inflation continued to accelerate.
Australia’s Reserve Bank no longer says it is patient, but it is unlikely to move move until it sees widespread higher wage growth.
Higher interest rates reduce demand for goods and services, which makes it harder for companies to raise prices. But there are risks as well.