New data show the most glowing US inflation for 30 years-analyst says increasing inflation could achieve a tilting point-economy
New data show the most glowing US inflation for 30 years-analyst says increasing inflation could achieve a tilting point-economy
Inflation remains hot in the United States, since the supply restrictions and the higher oil prices stop and the barrel of crude oil increases to over 80 USD per unit. Meanwhile, the data published on Friday show that consumer expenses have increased to 4.4%, the highest increase in inflation that the country has experienced for 30 years.
inflation continues to increase in the USA
The Americans have to struggle with higher inflation rates these days, since New data indicates that personal consumption spends peppered in September to 4,4%. Reuters reports that the increase in inflation "continues an increase in inflation at a level that has not been seen for 30 years". The loss of purchasing power of the Americans is attributed to bottlenecks in the supply chain, COVID-19 procedures arranged by the bid administration.
Reuters reporter Howard Schneider explains that the increasing inflation rates in the United States could undermine the allegedly of the Federal Reserve's chairman, Jerome Powell, that inflation will be “temporary”. However, the Cornerstone Macro-Economist Nancy Lazar believes that Powells will be correct claims. "We think deflation is the word" for the coming year, Lazar noticed . The economist added:
The inflation debate will move very, very quickly to wages.
Analyst of the University of Michigan says that there could be a “tilting point” where the income of the “consumers” can no longer keep up with the escalating inflation ”
Meanwhile, Ian Shepherdson from Pantheon Macroeconomics says that wage growth may not rise as quickly as inflation. In the fourth quarter it should be "clear" Shepherdson emphasized in a recently conducted interview and added: " reasonable to slow down with a slowdown in wage growth if the labor offer is recovering. ”
In addition, the University of Michigan explained on Friday that its survey on consumer mood fell from 72.8 points to 71.7 points. According to the survey chief economist, Richard Curtin, the inflation expectations for next year at the highest level in the United States since 2008. "This was the first major increase in inflation uncertainty that was listed outside a recession," Curtin told Yahoo Finance. Curtin says that consumers tolerate inflation for the time being, but over time the Americans could become less patient.
"These reactions promote an accelerating inflation rate until a turning point is reached where consumers' income can no longer keep up with the escalating inflation," Curtin concluded in his interview.
What do you think of increasing inflation in the USA? Do you think inflation will be temporary or not? Let us know your opinion on this topic in the comments below.
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