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IPFS News Link • Economy - Economics USA

80% Of Americans Say Post-Pandemic Food Inflation Is Impacting Their Budgets

•, Tyler Durden

Recently, these reports have shown signs of permanent economic scarring, though the September report emphasized a different angle: That the economic revival - while not a straightforward "V" - was unfolding more rapidly than they had anticipated.

Unfortunately, the central bank doesn't focus on surveying consumers with as much diligence. This could be one reason why some economists have slammed the central bank for being "out of touch". Not only does the central bank welcome inflation (just not too much of it), it relies on gauges of the phenomenon that have - falsely - suggested that consumer prices aren't rising. The Fed's preferred inflation gauge, the PCE numbers, exclude medical bills and other costs.

However, after years of "low" inflation, the virus has pushed prices of food and consumer goods higher. That's why Powell tweaked the central bank's inflation target to create more room for inflation to overheat - since that's what it seems to be doing.

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