ALL the above are going up…..
All the fancy ‘the economy is strong’ talk means absolutely NOTHING to the average American….
The reality that annual inflation has possibly peaked will give the White House and Fed a positive talking point and a dose of comfort. But the good news is undercut by the fact that the so-called core price measure — the one that takes out grocery and gas costs — picked up 0.6 percent in April from the prior month, faster than its 0.3 percent increase in March. Central bankers and economists closely watch that measure as they try to gauge where inflation is headed.
Policymakers have a long way to go to bring price increases down to more normal and stable levels, and Wednesday’s report is likely to keep them focused on trying to slow inflation that is still lingering near its fastest pace in 40 years.
“There’s not much to reassure the Fed in this release,” Brian Coulton, chief economist at Fitch, wrote in a research note following the report.
Economists do expect price increases to slow somewhat this year: The question is how much and how quickly they will come down. Many analysts expect to see slower price increases or even outright price cuts on many goods, but such forecasts look increasingly uncertain. Lockdowns in China and the war in Ukraine threaten to exacerbate supply shortages for semiconductor chips, commodities and other important products.
“There are persistent issues in supply chains,” said Matthew Luzzetti, chief U.S. economist at Deutsche Bank. “And the most recent developments have not been positive.”
The outlook for the car market, for instance, remains unclear as there are some signs that supply shortfalls for used vehicles are easing, but chip shortages linger and companies continue to struggle to finish building vehicles.
Used cars and trucks declined in price in April compared to the prior month, though less than they had dropped the prior month. Car parts had declined in price in March but resumed their monthly increase in April. New car prices also accelerated after a lull, climbing by 1.7 percent from the prior month.
Service prices are now increasing quickly, as rents climb rapidly and as worker shortfalls lead to higher wages and steeper prices for restaurant meals and other labor-intensive purchases. If that continues, it could keep inflation elevated even as supply problems are resolved.
Rents picked up by 0.6 percent in April from March, and a measure of housing costs that uses rents to estimate the cost of owned housing climbed by 0.5 percent, up from 0.4 percent the prior month. The pickup in housing costs is an especially big deal, because they make up about a third of the overall inflation index.
“Domestically-generated inflationary pressures remain strong,” Andrew Hunter, senior U.S. economist at Capital Economics, wrote following the report…..