Wednesday’s report from the Labor Department showed that consumer prices jumped 0.5% from June to July, down from the previous monthly increase of 0.9%. They have increased a substantial 5.4%, though, compared with a year earlier.
Excluding volatile energy and food prices, so-called core inflation rose 4.3% in the past year, down slightly from 4.5% in June — the fastest pace since 1991.
Americans continue to face higher costs, with the year-over-year inflation rate matching June’s increase as the largest annual jump since 2008. At the same time, some recent drivers of the inflation surge slowed last month. The price of used cars, which had soared over the past three months, ticked up just 0.2% in July. Airline fares, which had been spiking, actually declined 0.1% in July.
“We believe June marked the peak in the annual rate of inflation,” said Kathy Bostjancic, an economist at Oxford Economics. “That said, price increases stemming from the reopening of the economy and ongoing supply chain bottlenecks will keep the rate of inflation elevated.”
Rising inflation has emerged as the Achilles’ heel of the economic recovery, erasing much of the benefit to workers from higher pay and heightening pressure on the Federal Reserve’s policymakers under Chair Jerome Powell, who face a mandate to maintain stable prices.
Continue reading your story on the app
Continue reading your story in the magazine
$43m Battery Recycling Plant Set For Georgia, Hiring 150
A company that aims to recycle lithium ion batteries from vehicles and other uses will build its first large plant in suburban Atlanta, investing $43 million and hiring 150 people.
The next gen of LUVOIR’s space telescopes
TESLA SAYS IT DELIVERED RECORD 936K VEHICLES IN 2021, UP 87%
Tesla delivered a record 936,000 vehicles last year, up 87% from its 2020 delivery count, the company said.
GERMAN WATCHDOG PUTS GOOGLE UNDER CLOSER ANTITRUST SCRUTINY
Germany’s antitrust watchdog paved the way this week for extra scrutiny of Google by designating it a company of “paramount significance,” the first to get that label since regulators got more power to curb abusive practices by big digital companies.
FORD JACKS UP PRODUCTION OF ELECTRIC F-150, CITES BIG DEMAND
Ford says it will nearly double the annual production of its electric F-150 Lightning pickup truck based on a high number of advance reservations.
TESLA MODEL 3 RECALL OVER REAR CAMERA CONNECTION
Tesla is recalling certain Model 3s because a coaxial cable for its backup camera can become worn and fail to transmit images to the dashboard console.
CHRYSLER AIMS TO BE ALL ELECTRIC BY 2028
Chrysler plans go all electric by 2028, the latest automaker to announce a shift away from gasoline-powered engines under rising pressure to act on climate change.
CHINA URGES US TO PROTECT ITS SPACE STATION FROM SATELLITES
China is calling on the United States to protect a Chinese space station and its three-member crew after Beijing complained that satellites launched by Elon Musk’s SpaceX nearly struck the station.
CDC POSTS RATIONALE FOR SHORTER ISOLATION, QUARANTINE
The Centers for Disease Control and Prevention explained the scientific rationale for shortening its COVID-19 isolation and quarantine recommendations, and clarified that the guidance applies to kids as well as adults.
BIDEN SAYS DEAL WITH TELECOMS AVOIDS FLIGHT DISRUPTIONS
AT&T and Verizon have agreed to delay the launch of a new slice of 5G service by two weeks after airlines and the nation’s aviation regulator complained about potential interference with systems on board planes.