For decades, one of the world’s deadliest, longest-running crises has been unfolding in the Democratic Republic of Congo. Markets are pricing a nearly 79% chance for the first quarter-percentage point increase to come in May, and see about a 50% chance the Fed could enact four such hikes in 2022, according to the CME's FedWatch Tool.The 2017-20 Ebola outbreak in the DRC was the second-largest in history, and just one of the many aspects of the current state of humanitarian affairs in the country. Fed Chairman Jerome Powell, at his confirmation hearing Tuesday before the Senate banking panel, did not provide any specific dates but acknowledged that as long as current conditions persist, rate hikes are on the way. Investors largely expect the Fed to start raising rates in March. economist at Capital Economics.įood prices broadly rose 0.5% for December and were up 6.3% on a 12-month basis, the biggest rise since October 2008. Though there are signs the omicron variant cases could peak soon, lingering Covid issues combined with cold weather in the Northeast point "to renewed upward pressure on food prices," wrote Paul Ashworth, chief U.S. On a year-over-year basis, real earnings declined 2.4%, according to BLS calculations.įed officials largely attribute rising inflation pressures to pandemic-specific issues in which a shortage of workers has led to clogged supply chains and empty store shelves. However, real average hourly earnings posted a small 0.1% increase for the month, as the 0.6% total gain outweighed the 0.5% CPI headline increase. Inflation has been eating into otherwise strong wage gains for workers. "With Covid cases continuing to rise, the impact on the supply chain and labor shortages could persist, which only fuels higher prices." But the question remains if the Fed will pick up the pace given inflation is seemingly here to stay, at least in the medium-term," said Mike Loewengart, managing director for investment strategy at E-Trade. "This morning's CPI read really only solidifies what we already know: Consumer wallets are feeling pricing pressures and in turn the Fed has signaled a more hawkish approach. Though the central bank uses the personal consumption expenditures price index as its primary inflation measure, policymakers take in a wide range of information in making decisions. Still, the complex as a whole rose 29.3% in the 12-month period, including a gain of 49.6% for gasoline.įed officials are watching the inflation data closely and are widely expected to raise interest rates this year in an effort combat increasing prices and as the jobs picture approaches full employment. ![]() ![]() Used vehicle prices, which have been a major component of the inflation increase during the Covid pandemic due to supply chain constraints that have limited new vehicle production, rose another 3.5% in December, bringing the increase from a year ago to 37.3%.Ĭonversely, energy prices mostly declined for the month, falling 0.4% as fuel oil was down 2.4% and gasoline fell 0.5%. That was the fastest pace since February 2007. Shelter costs, which make up nearly one-third of the total rose 0.4% for the month and 4.1% for the year.
0 Comments
Leave a Reply. |