THAT IS You spending more for the same damn thing….
The good economy thing don’t a darn thing against prices…..
(Business owners still seeking to get back virus slowdown income)
The hard part?
The Fed raising interest rates that could slow big ticket sales as it seeks to Cool the inflation…
In the shorter term, data released Thursday by the Bureau of Labor Statistics also showed prices rose 0.6 percent in January compared with December, same as the November to December inflation rate, which officials revised upward slightly.
As with previous months, higher prices reached into just about every sector of the economy, leaving households to feel the strain at the deli counter, shopping mall and just about everywhere else.
“I’m worried,” said Diane Swonk, chief economist at Grant Thornton. She expects inflation to begin falling in the next few months but warns that it might be difficult to bring price growth down to pre-pandemic levels…..
Compared to 2021, the energy index rose 27 percent, and food rose 7 percent. The cost of food rose in January compared to December, with cereals and baked goods increasing the most. . Fruits and vegetables also edged up.
Several categories posted their largest price increases ever, including frozen and freeze dried prepared foods, cakes, cupcakes and cookies. Prices for vending machines, household furnishings and supplies, tools, household cleaning products, tires, medical services and video and audio services were also costlier than ever….
High inflation has left an indelible mark on the economy, including the highest price increases for housing, food and energy that many workers have ever seen. And questions loom about how or whether policymakers will be able to rein prices back in without slowing the recovery or even causing another recession. The answers will have enormous implications for policymakers atthe Federal Reserve and in the Biden administration….