This article summarizes the on-goings of the U.S. economy. In particular, it focuses on the 0.2% rise in the price levels for the month of February. This is a new trend compared to the three consecutive months of declines. Gas prices rose by 2.4% in February, after falling 18.7% in January. As usual, oil prices remain volatile and the strong dollar continues to put pressure. The fed has indicated that they will be increasing interest rates, while the dollar value rises against the euro and yen, as those economies cannot keep up. It is expected that the strong dollar will keep inflation stable in the near future, while also making imports cheaper.
3 comments:
It is a sign of recovery. Higher interest rate means expected higher return rate; therefore, people would favor in short term investing and liquidity, which means GDP grow in the long run.
I agree, in that this shows a sign of recovery. I think that it is a great thing that price levels are increasing because this shows the confidence in the market--more and more people are willing to invest in the market and spend money. Although I personally enjoyed the lower gas prices in January, it is good to see that they are increasing again, but not reaching the high prices they once were at.
I agree with Nicole. The fact that prices are rising is a sign of consumer confidence and that we are spending more which means investment into the economy. This price increase is a sign of recovery and strength.
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