U.S. consumer prices rebounded in February as gasoline prices rose for the first time since June, and there were also signs of small increase in underlying inflation pressures, which could keep a June interest rate increase on the table.
http://www.cnbc.com/id/102529573
http://www.cnbc.com/id/102529573
4 comments:
The rebound in consumer prices demonstrates an improving economy. Consumers have more confidence and thus buy more.
To go along with Emily, they are saving less and spending more currently, which is stimulating our economy in ways that we haven't seen for a while. Consumer confidence is increasing and consumers feel that their money is safer. Another thing is, although we see increased spending, banks are still holding excess reserves and not loaning out money.
Inflation can be good if it's coupled with comparable or better wage rate increases. In this case, luckily, this appears to be so: inflation of ~1% is paired with an estimated median wage of ~3%, which is demonstrative of a comprehensive economic recovery in progress.
The US economy is continuing to grow and seems to be in the upswing. This also has led to a strong increase in consumer confidence as well as an increase in the value of the dollar.
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