Consumers might wish for prices to drop, but here's why deflation is not a good thing

Mar 12, 2024
Most of the time deflation is a signal of a struggling economy. Disinflation — when prices still increase, just more slowly — is the goal.
Once prices go up, it’s unusual for them to drop.
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Even as hourly wages outpace inflation, rising prices take a bite

Mar 12, 2024
It’s been harder for lower- and middle-income households to afford higher food, rent and gas prices without getting into debt.
“We see higher wage growth since the recovery. But if people are working less, their total earnings are still less than inflation,” said ADP's Liv Wang.
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Is it possible that the economy has landed softly enough?

Mar 11, 2024
Fed Chairman Powell told a congressional committee not to expect a victory lap when and if the Fed decides it has finally beaten inflation.
Federal Reserve Chair Jerome Powell speaks before a House Financial Services Committee hearing on monetary policy on March 6.
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What do falling inflation and rising incomes mean for consumer spending?

Feb 29, 2024
The January PCE report showed inflation easing further but still significant. Moderation in spending could also continue, analysts say.
Wage growth was resilient in January, but Social Security and other factors added to income gains.
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Steady GDP growth sets US apart from peer countries

Feb 28, 2024
The U.S. economy has been growing at a steady clip while many others are faltering.
Despite interest rate hikes to combat inflation, the U.S. economy has grown for six quarters in a row.
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This might be the economy that liberals wanted, but do most voters feel the same?

Feb 27, 2024
If people don’t feel the strength of the economy, Democrats may have a problem this election season, says Victoria Guida at Politico.
President Biden has low approval ratings despite vigorous economic growth, low unemployment and a strong stock market.
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"I think our fear of high inflation is well warranted," Minneapolis Fed president says

Feb 21, 2024
Neel Kashkari weighs in on the state of the economy and what's left to bring inflation down to the Fed's 2% target.
"I do the grocery shopping for my family. I started doing that when the pandemic hit, and I still have sticker shock," says Neel Kashkari, Minneapolis Fed president.
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Want to know where inflation's headed? Look to the producer price index

Feb 20, 2024
It's usually called a measure of wholesale prices, but it can also be a leading indicator that shows where consumer prices are headed.
The cost of hospital outpatient care was up more than 2% last month. Health care costs are included in both the PPI and PCE.
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Low inflation doesn't relieve pain of high prices

Feb 15, 2024
Consumers' inflation expectations are falling. But they say the high prices imposed by inflation are still eroding living standards.
A Little Griddle eatery in Portland, Oregon, where co-owner Judd Harris has struggled to balance the prices he pays for supplies with the prices he charges customers.
Mitchell Hartman / Marketplace

Inflation falls, but not as much as expected

Feb 13, 2024
The CPI rose 3.1% in January compared to a year ago.
A major factor in core inflation is shelter costs. But the way the CPI calculates rent lags a bit behind current rent prices.
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