Soaring prices of goods such as new cars, gas, groceries and home furnishings drove U.S. inflation to a 40-year high. Now rising wages could make it harder...
Soaring prices of goods such as new cars, gas, groceries and home furnishings drove U.S. inflation to a 40-year high. Now rising wages could make it harder for the Federal Reserve to unwind the runup in inflation.
For the past year, high inflation was largely fueled by too much demand for goods and too little supply. Businesses couldn’t get enough materials to produce all the goods customers wanted because of pandemic-related shortages. And goods were in particularly high demand because people were afraid to go out.
Manufacturers, the producers of goods, can absorb the higher price of labor more readily because it represents a smaller portion of their total costs. As a result, service-oriented companies need even more workers, and the only way they are going to attract them is by offering higher pay.Over the past year the cost of services excluding energy has climbed to a 21-year high of 4.9% from as low as 1.3% at the start of 2021. Early in the pandemic the cost of most services rose relatively slowly because of weak demand.
Right now there are a record two job openings for every unemployed person, the highest level on record dating to 2001. The 1960s were probably the last time the labor market was as tight.
France Dernières Nouvelles, France Actualités
Similar News:Vous pouvez également lire des articles d'actualité similaires à celui-ci que nous avons collectés auprès d'autres sources d'information.
First-Ever Sun Valley Rising Viaduct Night Market In Denver Draws A CrowdHundreds gathered underneath the Colfax viaduct in Sun Valley for the first ever Sun Valley Rising Viaduct Night Market.
Lire la suite »
Rising property taxes spark fear | Morning NewsletterThe latest on owning a home in Philadelphia, and why we can't see the lunar eclipse tonight.
Lire la suite »
Despite rising rates, East Bay home sells for $1.5 million over askingA home in El Cerrito was listed at $1.295 million and, after 10 days on the market, it sold for $2.45 million.
Lire la suite »
Inflation impact: How the military may have to adjust spending to handle rising production costsThe procurement timeline for some vehicles can run for years, meaning the military will have to fulfill all current contracts despite the rising costs.
Lire la suite »
Rising rap star Lil Keed, considered Young Thug protege, dies at 24Rising hip-hop star Lil Keed, who was signed to Young Thug’s Young Stoner Life (YSL) label, died at age 24, his brother rapper Lil Gotit announced early Saturday morning.
Lire la suite »