Did the Fed’s favorite inflation gauge cool in July?

August 24, 2022 by Robert Jensen

Did the Fed’s favorite inflation gauge cool in July?

The Fed’s favorite inflation gauge cooled in July. The Personal Consumption Expenditures inflation index fell on a monthly basis in July as gas prices swooned. An annual gauge slowed. Shoppers in New York this month. The Federal Reserve has raised interest rates in an effort to bring down inflation and cool the economy.

What is the “prices-only” underlying inflation gauge (Uig)?

The “prices-only” underlying inflation gauge (UIG) is derived from a large number of disaggregated price series in the consumer price index (CPI), while the “full data set” measure incorporates additional macroeconomic and financial variables.

Why did inflation fall in July?

Want to see it on more articles? The numbers: A key gauge of U.S. inflation fell in July for the first time in more than two years thanks to tumbling gas prices, giving Americans some relief from a rapidly rising cost of living.

What is the US inflation rate?

The US Inflation Rate is the percentage in which a chosen basket of goods and services purchased in the US increases in price over a year. Inflation is one of the metrics used by the US Federal Reserve to gauge the health of the economy.

Did the Fed’s favorite inflation gauge cool in July?

June 27, 2022 by Robert Jensen

Did the Fed’s favorite inflation gauge cool in July?

Why does the Fed use the PCE price index for inflation?

First, using the PCE price index as a starting point (rather than, say, the CPI or the GDP price index) reflects the fact that the Federal Reserve’s longer-run inflation goal is defined in terms of this measure.

What is the underlying inflation gauge (Uig)?

How will the Fed use its tools to fight inflation?

Fed Chairman Jerome Powell on Friday pledged that the central bank will “use our tools forcefully” to attack inflation that is still running near its highest level in more than 40 years. In his annual Jackson Hole policy speech, Powell added that higher interest rates likely will persist “for some time.

Did the Fed’s favorite inflation gauge cool in July?

June 3, 2022 by Robert Jensen

Did the Fed’s favorite inflation gauge cool in July?

How much did inflation rise?

The core personal consumption expenditures price index, the Federal Reserve’s primary inflation gauge, rose 5.2% from a year ago, slightly more than the 5.1% Dow Jones estimate. It was the highest level since April 1983.

Should the Fed raise interest rates to slow down inflation?

“We have to get interest rates higher to slow down demand and bring inflation back to our target,” Esther George, president of the Federal Reserve Bank of Kansas City, said during a Bloomberg Television interview this week.

How will inflation affect Biden’s approval rating?

Raging inflation has inflicted financial pain on millions of U. S. households, particularly low-income families, eroding wage gains and setting up a massive political challenge for President Biden, who has seen his approval rating sink in conjunction with the rising prices.