Fed's Preferred Inflation Gauge Hits 40-Year High
Summary from the AllSides News Team
The Personal Consumption Expenditures (PCE) index rose by 6.8% in the year through June, the fastest rate since 1982.
The PCE measures the prices that people in the United States pay for goods and services, and is the Federal Reserve's preferred gauge for price inflation. Core prices, which exclude the more volatile measurements of food and energy, rose 0.6% from the previous month and 4.8% on an annual basis, according to the Commerce Department. Both numbers were higher than economists predicted.
A separate report released Friday by the Labor Department showed that employers spent 5.1% more on compensating workers in the second quarter of 2022 compared with the same period a year earlier, which marked the fastest annual pace on records back to 2001.
Left- and center-rated sources often highlighted the wage growth more prominently than right-rated sources did, which instead tended to focus primarily on high inflation. A Wall Street Journal (Center bias) report said the wage increases are "keeping pressure on historically high inflation." A New York Times report said Friday's numbers are "likely to keep the central bank on track for future rate increases." A Fox Business report said the compensation growth was "another troubling indication that inflation is broadening throughout the economy."
Featured Coverage of this Story
From the Left
Pay growth and prices picked up, keeping the Fed on track for rate increases
A wage growth measure that the Federal Reserve watches closely climbed swiftly in the three months through June and prices increased sharply last month, fresh economic reports showed on Friday, developments that are likely to keep the central bank on track for future rate increases even as the economy shows some signs of cooling.
Prices climbed by 6.8 percent in the year through June, the fastest for the Personal Consumption Expenditures index since 1982. Inflation also jumped by 4.8 percent over the past year after removing food and fuel — which economists...
From the Center
U.S. inflation surges again and stays at 40-year high, key price gauge shows
A key gauge of U.S. inflation rose a sharp 1% in June, led by higher fuel prices, in a sign that price pressures in the economy are still intense and unlikely to relent quickly.
The increase in the so-called personal-consumption price index exceeded Wall Street’s forecast. Economists had predicted a 0.9% advance.
A narrower measure of inflation that omits volatile food and energy costs, known as the core PCE, rose by 0.6% . That was above Wall Street’s 0.5% forecast.
The rate of inflation over the past year climbed to 6.8%...
From the Right
Fed's preferred inflation gauge climbs 4.8% in June, holding near 40-year high
The Federal Reserve's preferred inflation gauge accelerated more than expected in June, according to new data released on Friday, a worrisome sign as central bankers try to combat higher prices with the steepest interest rate hikes in decades.
The personal consumption expenditures index showed that core prices, which strips out the more volatile measurements of food and energy, climbed 0.6% from the previous month and rose 4.8% on an annual basis, according to the Commerce Department. Those figures are both higher than the 0.5% monthly increase and 4.7% annual increase forecast by...
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