Never-seen since January 1982, when Ronald Reagan’s America and the President of the Fed Paul Volcker struggled against stagflation.
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“I will do everything to minimize the” poutine hovel “at home.” By announcing the boycott of Russian oil, Tuesday, March 8, Joe Biden had found an easy manager for the rise of inflation, Vladimir Putin and The invasion of Ukraine. In fact, everything is not attributable to Russian President, and the figure of inflation in February in the United States has reached a record of 7.9%. Never seen since January 1982, when American Ronald Reagan and the President of the US Central Bank, the Fed, Paul Volcker struggled against stagflation.
From month in months, the trend accelerates: prices increased by 0.8% in February, compared to January, after an increase of 0.6 points the previous two months, according to the figures published, Thursday March 10, by the Department of Labor. The increase is now widespread, off-food and energy prices have jumped 6.4% over one year, while housing is up 4.7% and explains 40% of the monthly increase in the off-food index. And energy: this sustainable figure attests to a strongly rooted inflation in the economy.
A pre-existing energy crisis
This is due to bottlenecks that hinder the recovery of the economy after the Pandemic of COVID-19, the excessive demand for property to the detriment of services, the excessive budget stimulus plan and against Joe Biden in March 2021, and the ultra-accommodative policy of the Fed, which maintained its key rates at a nearly zero level, favoring the resumption of employment.
This is now added the war in Ukraine, which accentuates a pre-existing energy crisis, lack of productive investments needed in recent years. Energy prices increased by one-quarter over one year and 6.6% in February. But this figure will worship with rising fares at the last-day pump following the war: on March 10, the average price of gasoline had increased by 28.5% since January 31, according to the figures of the American Automotive Association. The gasoline weighing 3.7% of the index, if the 20% unincorposed increase is added, it can be estimated that an additional inflation of 0.75 points is in the pipe just on the Gasoline if prices stay highest at
Only new positive, there is no spiral inflation-salaries. The latter increased by 5.1% over one year, but this increase was brutally arrested in February. Catastrophic consequence for American employees: their actual remuneration fall, after rebounding under Donald Trump.
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