inflation | WOPULAR

The 2% Catastrophe: How One Number Explains the Miserable Economy

The Federal Reserve is crucifying the U.S. economy on a cross of two-percent inflation... The Fed makes a very simple promise: It promises to keep inflation at a certain level every year. That level has changed over the past 30 years, but it's currently around 2% a year. If the economy is running too hot, the Fed raises interest rates. If it's running cold, it lowers rates.

Senh: Good to know. That means if you put your money on CD's, you better make sure it makes at least 2% or you're losing money.

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Inflation outpaces earnings, threatens spending

WASHINGTON (Reuters) - Consumer prices rose modestly in March amid signs a spike in gasoline costs was ebbing, but inflation still outpaced workers' earnings and threatened to undermine consumer spending.

Consumer confidence eases, inflation view jumps

Americans this month ratcheted up their expectations on inflation to the highest level in 10 months and consumer confidence waned, though the economic recovery was still seen on track.

Higher gas prices push inflation rate increase to 10-month high

In another sign that higher gas prices are squeezing consumers, the government's monthly measure of inflation rose in February at the strongest pace since last April.

More expensive gas pushes up US wholesale prices

Higher gas costs drove U.S. wholesale prices up last month. But excluding the big jump in gas, inflation was mostly tame.

Senh: The good news is that inflation isn't going up much. Still, it's interesting how one single element, like gas prices, can affect other industries. Nothing's an isolated case. It's not just just gas prices; it's also everything related to it - like public transportation, transportation of products, airline fuel, etc... All of that eventually work their way into the price tag of every product you see in the supermarket or department store.

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If you raise the price, they'll still come

The way Americans are chomping Big Macs, lacing up pricey sneakers and gulping peppermint mochas in this economy, you'd think they're taking advantage of big holiday discounts.

Senh: It's true. I wonder how long this will last, with companies raising prices on food, gas, and other essentials during record unemployment and an anemic economy.

Germany and France clash on ECB crisis role

Germany and France clashed on Wednesday over whether the ECB should take bolder steps to stem the euro zone debt crisis, with Chancellor Angela Merkel issuing one of her starkest warnings yet against fiddling with the central bank's strict inflation-fighting mandate.

Consumer Prices Dip 0.1 Pct., as Gas Prices Drop

Inflation may have peaked after surging in the spring.

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Consumers paid more for food, gas in September

Consumers paid more for food and gas last month, although inflation outside those volatile categories was tame. The Labor Department says the Consumer Price Index rose 0.3 percent in September, below a 0.4 percent rise in August. Excluding food and energy, so-called core prices increased 0.1 percent, the smallest rise since March.

Senh: Great. Now that people are making less or unemployed, they have to pay more for necessities.

China economic growth set to slow

Economic growth in China during the third quarter of the year is expected to have slowed as a result of government measures to curb inflation.

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