{"id":606681,"date":"2021-07-30T10:36:21","date_gmt":"2021-07-30T14:36:21","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=606681"},"modified":"2021-07-30T10:57:55","modified_gmt":"2021-07-30T14:57:55","slug":"key-inflation-gauge-posts-fastest-annual-price-gain-in-30-years","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/key-inflation-gauge-posts-fastest-annual-price-gain-in-30-years\/","title":{"rendered":"Key Inflation Gauge Posts Fastest Annual Price Gain In 30 Years"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">22<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fkey-inflation-gauge-posts-fastest-annual-price-gain-in-30-years%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=606681&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>Consumer prices, excluding the volatile food and energy components, soared well beyond the <a href=\"https:\/\/www.theepochtimes.com\/t-federal-reserve\">Federal Reserve<\/a>\u2019s 2 percent target in the year to June, reaching levels not seen since 1991 and reinforcing concerns about <a href=\"https:\/\/www.theepochtimes.com\/t-inflation\">inflation<\/a>.<\/p>\n<p>The so-called core\u00a0personal consumption expenditures (PCE) price index, which excludes food and energy and is the Fed\u2019s preferred method for gauging inflation, rose 3.5 percent in the 12 months to June, after rising 3.4 percent in the year to May,\u00a0the Commerce Department <a href=\"https:\/\/www.bea.gov\/news\/2021\/personal-income-and-outlays-june-2021-and-annual-update\">said on Friday<\/a>.\u00a0The <a href=\"https:\/\/fred.stlouisfed.org\/series\/PCEPILFE#0\">last time<\/a> the core PCE inflation gauge saw a similar year-over-year vault was in July 1991.<\/p>\n<p>The Fed looks to core PCE as the key inflation gauge that informs its <a href=\"https:\/\/www.theepochtimes.com\/t-monetary-policy\">monetary policy<\/a>, which has an inflation target of a longer-run average of 2 percent.<\/p>\n<p>While some economists have raised the alarm on inflation, Fed officials and members of the Biden administration have insisted that price rises are temporary, arguing that inflationary pressures will ease as pandemic-related supply chain disruptions are ironed out.<\/p>\n<figure id=\"attachment_3637588\" class=\"wp-caption alignnone\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-606470\" src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2021\/07\/bide.jpg\" alt=\"\" width=\"1024\" height=\"683\" srcset=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2021\/07\/bide.jpg 1024w, https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2021\/07\/bide-300x200.jpg 300w, https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2021\/07\/bide-768x512.jpg 768w, https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2021\/07\/bide-922x615.jpg 922w, https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2021\/07\/bide-675x450.jpg 675w, https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2021\/07\/bide-480x320.jpg 480w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-caption-text\"><noscript><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-3637588 size-large\" src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2021\/05\/2020-12-29T111145Z-web-1200x675-1.jpg\" alt=\"Epoch Times Photo\" width=\"640\" height=\"360\" \/><\/noscript>The Federal Reserve Board Building on Constitution Avenue in Washington, D.C., on March 27, 2019. (Brendan McDermid\/Reuters)<\/figcaption><\/figure>\n<p>Fed Chairman Jerome Powell told reporters on July 28 (<a href=\"https:\/\/www.federalreserve.gov\/mediacenter\/files\/FOMCpresconf20210728.pdf\">pdf<\/a>) that\u00a0 it\u2019s possible inflation could run hotter and for longer than Fed analysts expect.<\/p>\n<p>\u201cThe process of reopening the economy is unprecedented, as was the shutdown at the onset of the pandemic,\u201d Powell said.\u00a0\u201cAs the reopening continues, bottlenecks, hiring difficulties, and other constraints could continue to limit how quickly supply can adjust, raising the possibility that inflation could turn out to be higher and more persistent than we expect.\u201d<\/p>\n<p>But Powell reiterated his oft-repeated view that, in the next year or so, inflation will return closer to the central bank\u2019s target of 2 percent.<\/p>\n<p>\u201cIf we saw signs that the path of inflation or longer-term inflation expectations were moving materially and persistently beyond levels consistent with our goal, we\u2019d be prepared to adjust the stance of policy,\u201d he said.<\/p>\n<p>On July 28, the Fed kept its overnight benchmark interest rate near zero and left its massive asset purchase program unchanged, with Powell saying at the press conference that the U.S. economy is still a ways away from making \u201csubstantial further progress\u201d towards the Fed\u2019s dual mandate of price stability and maximum employment.<\/p>\n<figure id=\"attachment_3901286\" class=\"wp-caption alignnone\"><img loading=\"lazy\" decoding=\"async\" class=\"lazy size-large wp-image-3901286\" src=\"https:\/\/www.theepochtimes.com\/assets\/themes\/eet\/images\/white.png\" alt=\"Federal Reserve Board chairman Jerome Powell\" width=\"640\" height=\"427\" data-src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2021\/07\/Jerome-Powell-1200x800-1.jpg\" \/><figcaption class=\"wp-caption-text\"><noscript><img loading=\"lazy\" decoding=\"async\" class=\"size-large wp-image-3901286\" src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2021\/07\/Jerome-Powell-1200x800-1.jpg\" alt=\"Federal Reserve Board chairman Jerome Powell\" width=\"640\" height=\"427\" \/><\/noscript>Federal Reserve Board chairman Jerome Powell testifies on the Federal Reserve\u2019s response to the coronavirus pandemic during a hearing on Capitol Hill in Washington, on June 22, 2021. (Graeme Jennings\/Pool via AP)<\/figcaption><\/figure>\n<p>Economists and investors have widely shifted their spectrum of concerns from\u00a0slow growth, high unemployment, and deflationary pressures at the beginning of 2021, to inflation.<\/p>\n<p>\u201cYou can\u2019t speak to anyone in the investment field without having the fear of inflation come to the forefront,\u201d said Robert R. Johnson, Professor of Finance, Heider College of Business, Creighton University, in an emailed statement to The Epoch Times.<\/p>\n<p>Some economists have expressed concerns that if prices accelerate too fast and stay high for too long, expectations of further price increases will take hold, driving up demand for wages and potentially triggering the kind of wage-price spiral that plagued the economy in the 1970s.<\/p>\n<p>Meanwhile, more than 80 percent of Americans are concerned about inflation, according to a <a href=\"https:\/\/www.skynova.com\/blog\/what-is-inflation-and-how-does-it-affect-you\">survey by Skynova<\/a>, which also indicated that 61 percent feel inflation will negatively impact their lifestyles.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Consumer prices, excluding the volatile food and energy components, soared well beyond the Federal Reserve\u2019s 2 percent target in the year to June, reaching levels not seen since 1991 and &#8230;<\/p>\n","protected":false},"author":7,"featured_media":2315279,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[],"class_list":["post-606681","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/606681","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/7"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=606681"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/606681\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2315279"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=606681"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=606681"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=606681"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}