Inflation rose 0.1% in August even with sharp drop in gas prices(cnbc.com)
cnbc.com
Inflation rose 0.1% in August even with sharp drop in gas prices
https://www.cnbc.com/2022/09/13/inflation-rose-0point1percent-in-august-even-with-sharp-drop-in-gas-prices.html
5 comments
Yeah. it feels like a no win situation. If you want to fight inflation, you probably have to endure the pain of higher unemployment and a recession. People described Volcker raising interest rates in the early 80's as being like chemotherapy.
I know the data says there was a drop, but here in the Bay Area it doesn’t feel like much. I’m still paying nearly $6/g and my groceries are floating around 15% average increase.
I honestly don’t know how people are surviving these increases given that so many people were living on the edge before this.
I honestly don’t know how people are surviving these increases given that so many people were living on the edge before this.
> There also was some good news for workers in the August report, as real average hourly earnings rose a seasonally adjusted 0.2% for the month. However, they remained down 2.8% from a year ago.
> The Federal Reserve is hoping to slow a labor market that has posted solid job gains through the year. Specifically, policymakers are concerned about a huge gap between job openings and available workers as labor force participation is stuck below its pre-pandemic levels. That has resulted in rising wages that have in turn put pressure on prices.
Doesn't that mean we could be looking at a wage-price spiral?
If that's true, then maybe the Fed really wants to see a big weakening of the labor market in order to create downward pressure on wages. Doesn't that mean they want to see layoffs? Really hope that's not the case...