Inflation

Inflation is a measure of the rate of increase in the prices of goods and services in an economy over a given period of time. Inflation occurs when the overall level of prices in an economy increases, reducing the purchasing power of a given amount of money.

This can be caused by a number of factors, including increased demand for goods and services, supply chain disruptions, changes in the money supply, and government policies such as fiscal stimulus or quantitative easing.

US inflation just hit the lowest in almost 2 years, throwing further Fed rate hikes into question. Here’s how President Joe Biden, Paul Krugman, David Rosenberg, and 4 others reacted.

May 12, 2023 Mark Paul Cervantes Comments Off

US inflation has cooled to its slowest pace since May 2021, casting doubt on further Fed interest-rate hikes. Annual gains in the Consumer Price Index declined to 4.9% in April, according to data released Wednesday. […]

US inflation eased to 4.9% in April as Fed tightening takes effect

May 10, 2023 Mark Paul Cervantes Comments Off

US inflation was slightly weaker than forecast in April, in a positive sign that the Federal Reserve’s cycle of interest rate rises is bringing price rises under control. Consumer price inflation dipped to an annual […]

US dollar edges up as market looks to inflation data

May 9, 2023 Mark Paul Cervantes Comments Off

(Reuters) – The Dollar edged higher against a basket of its peers on Monday, shaking off earlier weakness as traders moved past an unsurprising loans survey toward other economic data that could provide fresh clues […]

Analyzing the impact of US inflation data on the EUR/USD pair

May 9, 2023 Mark Paul Cervantes Comments Off

Join us in this insightful video as Nathan Bray, Senior Account Manager at ACY Securities, provides a comprehensive analysis of the upcoming US inflation data and its potential effects on the EURUSD currency pair. In addition, he […]

U.S. Fed hikes key interest rate by 0.25 point to curb inflation

May 4, 2023 Mark Paul Cervantes Comments Off

The U.S. Federal Reserve on Wednesday raised its benchmark interest rate by 0.25 percentage point, pressing on with its aggressive monetary tightening campaign to curb decades-high inflation despite further financial turmoil following the collapse of […]

Federal Reserve will likely hike interest rates again, signal a pause in inflation fight

May 3, 2023 Mark Paul Cervantes Comments Off

Here’s the good news. After its most aggressive interest rate hikes in 40 years, the Federal Reserve on Wednesday is expected to approve a final quarter-point increase and signal a long-awaited pause, economists say. The prospect of […]

The Inflation Reduction Act could energize the economy

May 1, 2023 Mark Paul Cervantes Comments Off

Last August, Congress enacted a significant piece of climate legislation, the Inflation Reduction Act (IRA). The IRA is vast and the climate issues it confronts are massive, reorienting the way the U.S. and global economies […]

Fed’s Inflation Gauge Shows Improvement in March, as Pace of Price Increases Slows

April 28, 2023 Mark Paul Cervantes Comments Off

The Federal Reserve’s favored inflation measure rose 0.1% in March, a slower pace than in February and matching expectations, the Bureau of Economic Analysis reported on Friday. The core personal consumption expenditures price index that […]

Vanguard: The housing market downturn is ‘why we view a mild U.S. recession in 2023 as most likely’

April 27, 2023 Mark Paul Cervantes Comments Off

History tells us that the Federal Reserve’s inflation-fighting playbook starts with the U.S. housing market. It goes like this. The central bank begins by applying upward pressure on mortgage rates. Soon afterwards, home sales fall and […]

Companies’ Cost Inflation Is Slowing but Shoppers May Wait for Lower Prices

April 26, 2023 Mark Paul Cervantes Comments Off

LONDON/PARIS (Reuters) -The world’s top consumer goods companies, making everything from instant noodles to soap and ice cream, are paying less for their raw materials and energy, but it may take time before shoppers see […]