Inflation watch: US customer prices have risen sharply since 2008 | Business and Economic Affairs

Malawi’s blaze erupted on Tuesday after U.S. government data showed consumer prices rose again in June.

Malawi’s blaze erupted on Tuesday after U.S. government data showed consumer prices rose again in June.

Consumer prices rose 0.9% last month from 0.6% in May, the US Department of Labor said. This is the sharpest change in a month since June 2008.

Over the past 12 months, wholesale prices rose 5.4% in June – the highest annual increase since August 2008. Total inflation has been rising monthly since January with a 12-month change of 1.4 percent.

A slight drop in prices is a good thing for the economy because it encourages consumers to buy goods and services here, instead of sitting in their pockets expecting prices to fall. But massive inflation is even worse, especially if it triggers a sharp rise in inflation that causes investors to raise interest rates and deplete the country’s economy from COVID-19.

There are two groups of ideas about inflation right now. One believes that pricing is a long-term benefit to the government, and provides barriers to manufacturing and services from start-up businesses if epidemics are reinstated and consumers express their demands.

Federal Reserve Chief Jerome Powell has fallen into the camp. He and his U.S. policymakers say they are willing to tolerate rising inflation, which is running at a rate of more than 2% over a period of time if it is necessary to cure the US labor market in the wake of COVID-19.

But some economists and data analysts are worried that inflation will not be short-lived and that the Fed may be slow to slow it down without breaking the brakes on growth.

There is also a heated debate among economists about the labor market in this country. In June, the unemployment rate was 5.9% – more than the 3.5% epidemic rate. And there were 9.5 million unemployed workers last month.

But in May, there were 9.2 million jobs in the US. And to show how confident some Americans are in their work, about 3.6 million of them resigned in May.

Some charge $ 300 a week for the government to provide compensation to the unemployed for harassing unemployed people to trample on the streets in search of work. Some cite fears of COVID-19, restrictions on certain types of work, and the difficulty of caring for children by preventing the unemployed from working.

In an effort to attract potential employers to open the site, some businesses have raised funds or offered sign-up bonuses. Some economists are now worried that rising wages could lead to inflation. But some say the incomes of low-income people in America were left behind before the epidemic, and they are only getting a long-term raise.

Meanwhile, inflation is rising, and low-income households are experiencing severe pain because rising prices – especially on essential commodities such as oil and fuel that cannot be extinguished – cost a large portion of their income.

Food prices rose by 0.8% in June after rising 0.4 percent in May. Electricity prices rose 1.5 percent last month in May when they were flat.

Departure of food and energy, and the so-called “peak” price index rose by 0.9% in June after a 0.7 percent increase in May. A wide range of similar brands continued to see rising prices including used cars and cars, new cars, aircraft prices and clothing.

“While rising commodity inflation and reopening should be offset, we expect higher wage growth to ensure that higher inflation slows in the coming months,” Capital Economics analysts told their clients on Tuesday. “From an average of more than 3% this year, we expect CPI inflation to be 2.8% next year, more than Fed officials appear to be expecting.”