Key inflation indicator-up 3.5% year over year in June

Key inflation indicator-up 3.5% year over year in June

August 02, 2021: -In June, an inflation indicator that the Federal Reserve uses as its crucial guide increase 3.5%, a sharp acceleration that was nonetheless right around Wall Street expectations, reported by the Commerce Department on Friday.

The personal consumption expenditures price index, excluding food and energy, was expected to increase 3.6% when the economy of the U.S. has seen its highest inflation pressures in over a decade.

That gain was ahead of the 3.4% pay increase and represented the most significant move from July 1991.

The central bank has targetted 2% as its desired inflation goal, though officials are willing to tolerate high levels of temporarily as the economy wants to get back to full employment. They expect the inflation surge to be transitory. It has come mainly from industries sensitive to the economic reopening and supply chain bottlenecks and other issues likely to fade, Fed officials said.

The core PCE index surged 0.4% month by month, below the 0.6% Dow Jones estimate, which indicates that inflationary pressures may be starting to ebb at least a bit.

However, personal income and spending numbers were better than expectations as consumers flush with stimulus cash kept the economic rebound going.

Income increased 0.1%, much more than the estimate for a 0.2% decline while spending increased 1% against a 0.7% forecast.

Employment inflation also continued to increase.

Compensation costs rose 0.7% for the three months ending in June while wages and salaries were up 0.9%. For the year, compensation costs rise 2.9%, up from 2.7% a year earlier, according to a separate report on Friday from the Labor Department.

The PCE index, which includes food and energy, increased 4% from a year earlier on the price inflation front. Its most significant increase since July 2008, just before the worst of the financial crisis hit. Energy prices increase 24.2%, and food moved 0.9% higher.

About Us

We provide the insights on leaders who are responsible for taking their organization to new heights, all the while bringing together a group of talented individuals.

Recent Posts

Tridon Communications | The Transformative Solution Provider | Ben Thompson

Tridon Communications, founded in 1981 and currently led by Ben Thompson, CEO, Chad Tomachefski, CGO, and Greg Tolson, COO, is western Canada’s leading Telecommunications System Integrator (TSI). Tridon aims to address all aspects of telecommunication system requirements, including PTT land mobile radio, fiber optics, structured cable, access control, PTP wireless and microwave, tower construction and maintenance, cyber security, and more. Tridon can take any telecom project from inception to completion, including design and engineering, project management, construction, installation and maintenance, repair, and maintenance, successfully providing organizations with end-to-end solutions as a single point of contact for wired or wireless communications.

Igniting Success® | Enhancing Human Potential | Angela Cusack

Angela Cusack, Founder & CEO of Igniting Success®, is understated and patient. She moves quickly as she partners with executive leaders in shaping cultures that produce deeper connections, higher engagement, and overall well-being and prosperity for all involved. Angela is an impact player. Someone whom many refer to as their “organization’s secret weapon.”

Commonwealth Charter Academy | Building A Great Future Generation | Thomas D. Longenecker

Innovation is a crucial aspect of leadership. Innovative leaders can think creatively, identify opportunities, and develop new ideas to help their organizations grow and stay relevant in a constantly changing world. They can inspire their teams to think outside the box and create new solutions to problems. Thomas D. Longenecker is an innovative leader with the unique ability to strategize at the micro and macro levels. His leadership style, complemented by his extensive finance and operations experience, fosters collaboration among the senior leadership team, which ultimately is spread throughout all verticals of the organization.

Tristar Coatings | Transforming The Painting Industry With Innovation | Svetlana Melkova

There are many challenges facing the painting and coating industry today, and the pandemic just added fuel to the fire. These include raw material shortages and the globalization of the painting and coating market. Other challenges include increasing regulations due to environmental concerns and increasing manufacturing costs and raw materials. Ontario-based Tristar Coatings has been able to leverage its extensive knowledge base and highly skilled chemists to provide the solutions today’s organizations need in the time they require it most. In overarching terms, customer performance requirements can mean increasing product output whilst streamlining the process in which that product is manufactured. This can come in the form of preparing the substrate before the painting process (whether that be with physical or chemical cleaning) or actual product modifications to prevent or promote certain properties in the coating (such as adhesion, corrosion protection, film build, UV resistance, etc.), but Tristar has it all.

The Lake Companies | Making Manufacturing Easier…Forever! | Greg Lake

The Lake Companies knows that to achieve best practices, specific daily business processes must happen and be done as simply as possible, even without human effort. “That’s how we develop our ERP software products. We strive to completely transform internal business processes and revolutionize the user experience with our software,” says Greg Lake, President of The Lake Companies. “Building the support for best practices in our software allows our customers to achieve far more than they anticipated, while paving the way for growth into advanced IoT and Industry 4.0 technologies. Our Simple, Elegant, and Powerful solutions are built specifically for and seamlessly integrate with Infor’s SyteLine®(CloudSuite®) ERP.”

Cyncly | Preparing Customers for the Future | Andrea Gnoato

Cyncly was created in September of 2022 as the new brand to unite Compusoft, 2020, and their affiliate companies after the two companies merged in 2021. One of the key factors driving the decision to form Cyncly as a global brand was that consumers worldwide wanted a seamless experience when they decided to improve their homes. And because Cyncly had brought together all these industry-leading software solutions – retailers, designers, and manufacturers in kitchens, bathrooms, furniture, windows, and doors – they were in a unique position to provide their customers with the tools to do this. By connecting all these previous disparate elements, they were able to help companies using our software make their consumers’ journeys seamless and put consumers at the heart of what they do.