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Thu Jul 12, 2018, 10:00 AM

Consumer prices rise at highest annual rate since 2012

Source: The Hill



BY SYLVAN LANE - 07/12/18 09:56 AM EDT

Consumer prices rose 2.9 percent in the year since June 2017, a five-year high, while hourly wages fell 0.2 percent in the same period, according to federal data released Thursday.

The consumer price index (CPI) rose almost three percent over the past year, the highest annual increase since February 2012, according to federal data. But hourly wage earnings adjusted for inflation decreased despite record-low unemployment and U.S. businesses struggling to fill thousands of jobs.

Economists have struggled to understand why wage growth has lagged while unemployment lingers near 4 percent and growth nears closer to 3 percent of GDP. Consumer prices are starting to rise at levels close to the Federal Reserve’s target after years of meager increases.

The Fed is keeping a close eye on inflation as it proceeds with several planned interest rate hikes. The central bank is eager to prevent higher spending, tax cuts and the burgeoning trade war from driving prices to unsustainable highs.

Read more: http://thehill.com/policy/finance/396662-consumer-prices-rise-at-highest-annual-rate-since-2012

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Response to DonViejo (Original post)

Thu Jul 12, 2018, 10:05 AM

1. Economists have struggled to understand why wage growth has lagged?

Uh........really? I'm no rocket surgeon, but I could probably come up with a logical explanation.


Peace

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Response to hibbing (Reply #1)

Thu Jul 12, 2018, 12:42 PM

6. Maybe it's because of too many billionaires and millionaires not sharing their gains with workers...

who have helped them gain so much, over the last 30 years, e.g., I don't see green mail or the like happening w/ wage growth, like you do w/ stock prices, so while asset prices have skyrocketed, wages have not, when they should have (because workers helped achieve these higher prices).

Also, federal min. wage laws have remained stagnant for decades, and tax policies have favored capital gains, not wages.

In addition, republicans have prevented wages from increasing by passing state-wide legislation preventing cities from increasing minimum wages in republican controlled states. This has happened in Missouri (remember Missourians, vote against any republicans (e.g., Josh Hawley) this year in MO!, this is just one reason why).

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Response to DonViejo (Original post)

Thu Jul 12, 2018, 10:06 AM

2. A year from now it will be pushing 6% or more

because they are stimulating a full employment economy and resources are already constrained by lack of skilled labor and Trump's gratuitous tariffs

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Response to DonViejo (Original post)

Thu Jul 12, 2018, 10:17 AM

3. So much winning is evidently expensive for consumers.

And it's going to get a lot more expensive as the results of all his bullshit economic changes. I think there should be a tax surchage for anyone stupid enough to have voted for this corrupt idiot.

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Response to DonViejo (Original post)

Thu Jul 12, 2018, 10:24 AM

4. Most of that is the price of oil. Energy up 12%. After Chinese tariffs kick in, ouch!

Especially on consumer goods.
This tariff war will be Trump's Operation Barbarosa.

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Response to DonViejo (Original post)

Thu Jul 12, 2018, 10:52 AM

5. trump is winning

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Response to DonViejo (Original post)

Thu Jul 12, 2018, 12:48 PM

7. Higher store prices, car prices, gas prices, interest rates, housing costs, medical costs

Higher repair costs for everything if you don't want to replace

Stagnant wages

MAGA!!!!!

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Response to DonViejo (Original post)

Thu Jul 12, 2018, 08:04 PM

8. High inflation is a boon for real estate speculators and developers.

Mortgage loans much easier to pay back with dollars worth just a percentage of when they were borrowed. Kushner has got to love this.

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