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Inflation

Ford CFO says inflation has erased Mustang Mach-E profits, but isn’t hurting demand

The Mustang Mach-E is Ford's first new all-electric vehicle under an $11 billion investment plan in electrified vehicles through 2022.Michael Wayland | CNBCFord Motor's CFO said Wednesday that the company isn't yet seeing consumer demand for new vehicles drop off – but rising commodity costs have wiped out the profit it initially expected to make on its electric Mustang Mach-E.Demand for new Fords and Lincolns continues to exceed supply, which is still constrained by an ongoing global shortage of semiconductor chips, Ford…

On Inflation, Economics Has Some Explaining to Do

Having failed to anticipate the steepest inflation in 40 years, you would think the economics discipline would be knee-deep in postmortems.Not yet. Outside of a handful of individuals, economists have thus far devoted remarkably little attention to how their theories and models got inflation so wrong. There has yet to be a surge of studies from the National Bureau of Economic Research, the leading outlet for academic economics, on inflation as compared with the gusher of papers on pandemics in 2020. This would be…

Travel costs are up but travelers aren’t canceling their plans yet

Summer travel talk sure isn't what it used to be.Rather than sun, sand and surf, many travel discussions now center on inflation, rising fuel costs and flight cancellations, a situation which could derail a much-needed 2022 summer travel comeback.Travel conversations on Twitter decreased 75% from April to May, while discussions related to gas prices and travel — half of which were negative — climbed 680% on the website from the winter months into the spring, according to the social media analytics company Sprout…

GOP Offers Tax, Trade Policies Aimed at Combating Inflation

WASHINGTON—Congressional Republicans are beginning to detail their plans to combat inflation and soften its impact on households, indicating some tax, trade and regulatory policies they might pursue if they take control of the House and Senate in this fall’s midterm elections.Sen. Chuck Grassley (R., Iowa) on Tuesday is proposing to adjust a tax-code provision for inflation and reduce some taxes on investments. Meanwhile, Republicans on the House Ways and Means Committee are outlining their…

Denver-area inflation rate drops to 8.3%, decreasing for the first time in 18 months

Consumer inflation in the Denver-Aurora-Lakewood area slowed to an 8.3% annual rate in May, down from a 9.1% annual rate in March, marking the first time the headline inflation number has fallen in Colorado since November 2020, according to an update from the U.S. Bureau of Labor Statistics. “For the first time we turned a corner and the inflation rate went down, which is a pretty big deal,” said Stephan Weiler, a professor of economics at Colorado State University. Denver’s inflation rate, while still near a 40-year…

Global markets fall, roiled by U.S. inflation, rate adjustment fears

Global markets tanked on Monday with the dollar touching its peak in two decades as high U.S. inflation data stoked concerns that central banks will further raise rates. At 5.20 am ET, U.S. Dow Jones futures fell 1.9 per cent, while S&P 500 futures slipped by about 2.3 per cent. Nasdaq futures slid 2.9 per cent. The U.S. consumer price index quickened by 8.6 per cent last month, strengthening the possibility that the Federal Reserve could take an aggressive approach to tame price…

Inflation Reports Raise Chances for Surprise 0.75-Percentage-Point Rate Rise This Week

A string of troubling inflation reports in recent days is likely to lead Federal Reserve officials to consider surprising markets with a larger-than-expected 0.75-percentage-point interest rate increase at their meeting this week.Before officials began their pre-meeting quiet period on June 4, they had signaled they were prepared to raise interest rates by a half percentage point this week and again at their meeting in July. But they also had said their outlook depended on the economy evolving as they expected. Last…

How the Fed and the Biden Administration Got Inflation Wrong

In recent weeks, top officials in the Biden administration and Federal Reserve have publicly conceded that they made mistakes in their handling of inflation. Behind their errors was a misreading of the economy. Advisers to President Biden and Fed officials worried the Covid-19 pandemic and related restrictions would bring similar consequences to the 2007-09 financial crisis: weak demand, slow growth, long periods of high unemployment and too-low inflation. So they applied the last playbook to the new crisis.…

8 bargains hidden inside ugly inflation report – The Denver Post

The “Looking Glass” ponders economic and real estate trends through two distinct lenses: the optimist’s “glass half-full” and the pessimist’s “glass half-empty.” Buzz: With inflation running at a 40-year high — an ugly 8.6% nationally — one would think everything is pricier. Actually, 93% of the 333 items tracked in the monthly inflation report were more expensive in May than they were a year ago. Source: My trusty spreadsheet reviewed the latest Consumer Price Index for May, looking at 12-month price changes. Glass…

NY Fed Survey Finds Jump in Near-Term Inflation Expectations in May

The public’s expectations for inflation in the short term rose in May, according to a report Monday from the Federal Reserve Bank of New York. Households believe inflation one year from now will be 6.6% higher, up from the 6.3% projection seen in the April data and the highest level seen in a survey that goes back to 2013. But the New York Fed also found in its latest Survey of Consumer Expectations that the expected level of inflation three years from now held steady at 3.9%. The…