| In the US, inflation has slowed substantially over the past two years. But there's been a disconnect between what inflation data shows and what millions of Americans say they are experiencing. Just ask any candidate on the campaign trail. Sure, it's partly due to the emotional scars from years of high prices, the high sensitivity to even residual inflation, massive credit card debt (see below) and, more darkly, the increasing willingness to see personal finances and even the broader economy through the prism of political tribalism. But there may be something else at work: the government's key inflation measure excludes some major everyday costs that have surged in recent years. Property taxes? Not counted. Tips? Not counted. Interest charges on your loans? Not counted. Here's what's not in the government's inflation report, why it may be the missing piece of the puzzle, and how to get a better number.  For its part, the International Monetary Fund has declared the fight over inflation to be receding, but it warned that global growth is at risk from wars and protectionist rhetoric. Though central banks have tamed inflation without sending nations into recession, the IMF said growth would continue at middling rates in the near term, and sit at lower than predicted levels this year. On Wall Street, Goldman Sachs predicted the end of high market returns while JPMorgan said that—with the S&P back at record highs—there's room to run. In other words, dealer's choice. Here's your markets wrap. —Margaret Sutherlin | 
No comments:
Post a Comment