Category: Economics
Update Economic USA Inflation PPI
After a sizable increase in producer prices last month, prices moderated with a slight drop reaching 2.4% annualized. This is a welcome slowdown as recent increases were starting to indicate a potential long term increase that could lead to inflation at the consumer level. With a spread of 0.5% between the CPI and PPI and with several months of trending increases, the Fed may decide to raise bank rates today in an effort to return to “normal” interest rates. Normal bank interest rates at the Fed are considered to be 3.0%.
Update Economic USA Inflation CPI
After last month’s increase of 2.2% the consumer price index moderated this month and moved down to 1.9% when measured over the past 12 months. This is slightly higher than the 10-year average of 1.6% and lower than the Fed target of 2.0%. The move was created by a 0.1% drop in May that came about primarily due to reductions in energy overall, and specifically gasoline. Food was slightly up by 0.2%. Energy related products remain the major influence in fluctuations in the index while most other prices remain stable.
Update Economic USA Inflation PPI
There was a sizable increase in producer prices recently. The general trend displayed in the chart below by the red line has been indicating a gradual increase in prices. The annual rate is now at 2.5%. If the increases find their way into consumer prices, the Fed has good reason to continue with their methodical increases in bank rates.
Update Economic USA Job Creation
Job creation is an important factor in determining growth in the economy. The general trend. This is well within our forecast. The most recent report shows a nice gain moving from 177,000 to 263,000. Levels above a 200,000 gain are considered expansionary. All three size classifications improved with small enterprises adding the most. Small enterprises increased by 118,000 from a previous gain of 61,000. The unemployment rate also remains in a favorable area at 4.4%.
Update Economic USA GDP
GDP or Gross Domestic Product is one of the most important gauges of economic activity than any other variable. It is the culmination of all economic activity bundled into a single measure. This measure has also been one of the least understood and many times abused, especially during political campaigns.