US Inflation Hits 40-Year High Of 7.5%

[beijingwalker]

US Inflation Hits 40-Year High Of 7.5%​

Updated: Feb 16, 2022, 11:28am
Andrew MichaelForbes Staf

The US consumer price index jumped by 7.5% in the year to January 2022, putting the country’s inflation rate at its highest level since 1982.

The figure, released today by the US Bureau of Labor Statistics, exceeded economists’ expectations and is 0.50 percentage points higher than the 7% recorded in the 12 months to December 2021 – itself the highest rate since 1982.

Food and energy costs helped drive the increase, along with labour shortages and ongoing problems with the global supply chain caused by the Covid-19 pandemic.

The news puts increased pressure on the US Federal Reserve to act more aggressively to tame inflation by raising interest rates.

The Fed recently signalled its intention to raise US interest rates next month, in what could be the first of a series of steps to head off sustained and potentially crippling levels of inflation.

Last week, faced with the same inflationary headwinds that are currently affecting all major economies, the Bank of England increased the Bank rate to 0.5% – the second increase in the space of three months following the rise from 0.1% to 0.25% in December.

Spring forward​

Despite these moves, the Bank of England has warned that UK inflation could reach 7% this Spring before beginning to level off and eventually fall back. According to the latest figures from the Office for National Statistics, consumer prices grew by 5.5% in the 12 months to January 2022, a 30-year high.

Victoria Scholar, head of investment at interactive investor, said: “It looks as though the Fed could be in for around six rate hikes this year, with lift-off in March. Given the tightness of the labour market and strength of the underlying economy, the Fed is already behind the curve on inflation.

“The big question is to what extent the Fed’s limited demand-side focused tools will be able to target the supply side pressures from energy and labour.”

Hinesh Patel, portfolio manager at Quilter Investors, said: “Despite hopes that inflation may be starting to reach its peak in the US, the latest CPI reading has indicated it might be a few months before we can begin contemplating that thought.

“Markets have been caught unawares by this surprise to the upside and will just reiterate the Federal Reserve’s need to start hiking policy rates at its next meeting.”

US Inflation Hits 40-Year High Of 7.5%

The US consumer price index jumped by 7.5% in the year to January 2022, putting the country’s inflation rate at its highest level since 1982. The figure

www.forbes.com

 

[mhosein]

Yup that is what happens when you have perpetuated quantitative easing and brought down the interest rate to zero. That in combination with a shrinking USD as world reserve currency, America has less countries who have USD as their reserve currency, to be available to export it's inflation to.

End result, runaway inflation approaches and will inevitably lead to hyperinflation.

 

[beijingwalker]

The reason China can enjoy a high growth rate with low to none inflation is we produce stuff, unlike US, only prints money.

 

[Taimoor Khan]

The major reason yanks are looking for conflict in Ukraine. Old tried and tested formula.

 

[Hamartia Antidote]

um...no


Updated: Feb 10, 2022

Why Is Inflation So High?

Investors got some good news on Tuesday after a popular measure of inflation came in lower than expected in November. The Labor Department reported that the consumer price index (CPI) rose 7.1% in November, down from a 7.7% gain in October and less than the 7.3% increase economists were expecting

www.forbes.com

Elevated inflation has been driven by supply chain disruptions and pent-up consumer demand for goods following the reopening of the economy in 2021. Should these issues resolve themselves, the Fed may not have as much work to do on the inflation front as some fear.

 

[ARMalik]

US Inflation Hits 40-Year High Of 7.5%​

Updated: Feb 16, 2022, 11:28am
Andrew MichaelForbes Staf

The US consumer price index jumped by 7.5% in the year to January 2022, putting the country’s inflation rate at its highest level since 1982.

The figure, released today by the US Bureau of Labor Statistics, exceeded economists’ expectations and is 0.50 percentage points higher than the 7% recorded in the 12 months to December 2021 – itself the highest rate since 1982.

Food and energy costs helped drive the increase, along with labour shortages and ongoing problems with the global supply chain caused by the Covid-19 pandemic.

The news puts increased pressure on the US Federal Reserve to act more aggressively to tame inflation by raising interest rates.

The Fed recently signalled its intention to raise US interest rates next month, in what could be the first of a series of steps to head off sustained and potentially crippling levels of inflation.

Last week, faced with the same inflationary headwinds that are currently affecting all major economies, the Bank of England increased the Bank rate to 0.5% – the second increase in the space of three months following the rise from 0.1% to 0.25% in December.

Spring forward​

Despite these moves, the Bank of England has warned that UK inflation could reach 7% this Spring before beginning to level off and eventually fall back. According to the latest figures from the Office for National Statistics, consumer prices grew by 5.5% in the 12 months to January 2022, a 30-year high.

Victoria Scholar, head of investment at interactive investor, said: “It looks as though the Fed could be in for around six rate hikes this year, with lift-off in March. Given the tightness of the labour market and strength of the underlying economy, the Fed is already behind the curve on inflation.

“The big question is to what extent the Fed’s limited demand-side focused tools will be able to target the supply side pressures from energy and labour.”

Hinesh Patel, portfolio manager at Quilter Investors, said: “Despite hopes that inflation may be starting to reach its peak in the US, the latest CPI reading has indicated it might be a few months before we can begin contemplating that thought.

“Markets have been caught unawares by this surprise to the upside and will just reiterate the Federal Reserve’s need to start hiking policy rates at its next meeting.”

US Inflation Hits 40-Year High Of 7.5%

The US consumer price index jumped by 7.5% in the year to January 2022, putting the country’s inflation rate at its highest level since 1982. The figure

www.forbes.com

The inflation is NOT 7.5%. It is actually 17% going by the 1980's inflation calculator which is actually the REAL calculator before the thugs in US Government decided to REMOVE all daily essentials from how the inflation was calculated.

 

[beijingwalker]

 

[925boy]

House values will always stay over inflation, and thats why they've been going up - few things in this economy hold real value.

 

[Pakistan Space Agency]

... America has less countries who have USD as their reserve currency, to be available to export it's inflation to. ...

For example?

As the article clearly indicates this is the highest inflation since 1982. Now does that mean that in 1982 there were also less countries who had USD as their reserve currency?

Please list the countries that don't have the USD as their reserve currency.

 

[SaadH]

The reason China can enjoy a high growth rate with low to none inflation is we produce stuff, unlike US, only prints money.

Biggest reason for inflation is the holy cows, rather gods of US, the billionaires.

60% of the inflation in US is going towards profits.

All companies are raising prices in direct proportion to their profits, Starbucks's profits rose by 20%, lo and behold so did their prices by the exact same percentage.

 

[mhosein]

For example?

As the article clearly indicates this is the highest inflation since 1982. Now does that mean that in 1982 there were also less countries who had USD as their reserve currency?

Please list the countries that don't have the USD as their reserve currency.

Ah that was a typo. The statistic is as follows:

"In 2015, around 90% of their bilateral transactions were conducted in dollars. But since the start of the US-China trade war, that’s fallen to 46% and is rapidly declining further."

 

[pffffft]

Yup that is what happens when you have perpetuated quantitative easing and brought down the interest rate to zero. That in combination with a shrinking USD as world reserve currency, America has less countries who have USD as their reserve currency, to be available to export it's inflation to.

End result, runaway inflation approaches and will inevitably lead to hyperinflation.

has nothing to do with q.e
it's supply chains

 

[mhosein]

has nothing to do with q.e
it's supply chains

That "pass the buck" mindset, "where is not that, it's this" is indicative of an ostrich with its head burried in the sand, thinking one thing is not connected with the other. It is the reason why the West continues it's assured decline which will lead to it's predicted and inevitable collapse.

 

[casual]

um...no


Updated: Feb 10, 2022

Why Is Inflation So High?

Investors got some good news on Tuesday after a popular measure of inflation came in lower than expected in November. The Labor Department reported that the consumer price index (CPI) rose 7.1% in November, down from a 7.7% gain in October and less than the 7.3% increase economists were expecting

www.forbes.com

Elevated inflation has been driven by supply chain disruptions and pent-up consumer demand for goods following the reopening of the economy in 2021. Should these issues resolve themselves, the Fed may not have as much work to do on the inflation front as some fear.

Been hearing this since June last year. They also said inflation was temporary and will ease by years end. While year has ended and inflation is higher than ever.

 

[Broccoli]

House values will always stay over inflation, and thats why they've been going up - few things in this economy hold real value.

Houses aren't good investment unless it's located in optimal area. As population globabally grows older there will be less people buying houses as numbers of younger people drop.