Inflation

What does the Nonfarm Payroll report tell us? The Nonfarm Payroll report, also known as the Employment Situation report, provides detailed information on the employment situation in the United States. This includes the number of people employed (excluding farm workers and some other U.S. workers), the unemployment rate, and wage inflation—the rate of change in wages. It is published monthly by the Bureau of Labor Statistics (BLS), usually on the morning of the first Friday. The Nonfarm Payroll report is closely watched by investors, economists, and policymakers because it provides…

Introduction The Federal Reserve (Fed) plays a vital role in shaping the United States’ monetary policy, and one of its primary objectives is to maintain price stability. To achieve this goal, the Fed closely monitors various economic indicators, with the Personal Consumption Expenditures (PCE) and Consumer Price Index (CPI) being two of the most significant measures. In this article, we will explore the PCE and CPI indices, highlighting their differences and implications for investors. The Personal Consumption Expenditures (PCE) Index Overview The PCE index, published by the Bureau of Economic…

Introduction to Inflation Inflation is the sustained increase in the general level of prices for goods and services in an economy over time. When the price level rises, each unit of currency buys fewer goods and services, effectively eroding the purchasing power of money. Inflation is usually measured as the annual percentage change in the Consumer Price Index (CPI) or the Wholesale Price Index (WPI). Causes of Inflation There are several factors that can contribute to inflation, such as an increase in demand for goods and services, a decrease in…

Stagflation refers to a state of economic conditions characterized by significant inflation, high unemployment, and slow or no economic growth. The term itself is a combination of “stagnation” and “inflation”. Prior to the 1970s, dominant economic theories posited that inflation would increase when unemployment rates were low and decrease when they were high. This theory was based on the Phillips Curve, an economic model that proposed an inverse relationship between unemployment and inflation. However, the prevalence of stagflation in the 1970s and 1980s surprised economists and forced them to refine…

In the past decade, American households have seen a dramatic erosion of their purchasing power. This is largely due to inflation, which has been steadily eroding our buying power for years now. The result of this inflationary pressure is that the middle class in America is struggling to keep up with rising costs of living. From rising food and housing prices to increasing taxes, the burden on the American middle class is becoming increasingly difficult to bear. In this article, we will explore how inflation has had a detrimental impact…

Inflation is a naturally occurring economic phenomenon that occurs when there is an increase in the general price level of goods and services in an economy over a period of time. This increase in prices affects the purchasing power of money, making it difficult for people to maintain their standard of living. Inflation can also have a significant impact on the retirement savings of Americans, particularly those who have invested their savings in 401ks and other retirement plans. The current rate of inflation in the United States has been steadily…

Inflation is a measure of the increase in the price of goods and services over a given period of time. In recent years, the world has seen a significant rise in inflation rates, leading many people to wonder when prices will stop going up. This article will examine the causes of inflation and provide some insight into when prices may start to level off. One of the main causes of inflation is the increase in the cost of production. This can be due to factors such as higher costs for…

As the world’s reserve currency, the U.S. Dollar has often been taken for granted, but over time it has become increasingly devalued. In the past few decades, the U.S. Dollar has seen a steady decline in its purchasing power. As inflation and other economic factors continue to drive up prices, the real value of our money has been steadily eroded. In this article, we’ll explore how this phenomenon has occurred, and what you can do to protect your own wealth against such losses. Introduction It’s no secret that the purchasing…

Inflation has been one of the most widely discussed topics among financial experts in the past few months. With supply chain disruptions easing and interest rates at 15-year highs, there is a sense that inflation may have peaked. However, Fed officials remain uneasy as labor markets remain tight and inflation could still spike. In this article, let’s take a closer look at the current state of inflation and what it could mean for our economy moving forward. Introduction to Inflation and Economic Factors Inflation has been a hot topic in…

For many years, the Federal Reserve has kept its inflation target at 2%. But with growing government debt and an aging population, some economists are arguing that this target should be increased. In this blog article, we will explore the potential pros and cons of increasing the Federal Reserve’s inflation target, and how it could affect government debt levels. Introduction For years, the Federal Reserve has been criticized for not doing enough to spur economic growth and inflation. Some have argued that the Fed should raise its inflation target in…