Fed vs. U.S. Consumer: Will Inflation Go Higher?
From the .minutes of the most recent meeting of the Federal Open Market Committee:
Total PCE inflation was projected to moderate from its current elevated level to between 1-1/2 percent and 2 percent in 2010, although participants stressed that this expected moderation was dependent on food and energy prices flattening out and critically on inflation expectations remaining reasonably well anchored.
Elsewhere in the news, the latest Michigan/Reuters survey reports that the median U.S. consumer is expecting prices to rise by 5.2% over the next year. That's the highest reported 12-month expected inflation rate since 1982.
Median expected price change next 12 months, from the University of Michigan Survey of Consumers. Data source: FRED and MarcketWatch
And here's what U.S. retail gasoline prices have done in the 30 days since the FOMC meeting quoted above:
U.S. average retail gasoline price. Source: NewJerseyGasPrices.com
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This article has 3 comments:
- The Real Expert
- 75 Comments
Jun 02 10:17 AM- theinvestingspeculator
- 133 Comments
My Website
Jun 02 11:13 AM- dshort
- 20 Comments
My Website
Jun 02 02:08 PMIf the Bureau of Labor Statistics were using historically consistent metrics, we'd already be well above the 7.8% rate of inflation (headline CPI) posted in October 1973 at the beginning of the Arab Oil Embargo:
dshort.com/charts/two-...