A bit more on that high inflation rate seen in August PCE.

Image courtesy of Adobe Stock.

Few days ago we discussed the Personal Consumption Expenditure for August 2021 shows ongoing inflation.

The August number of 0.4% increase results in a year-over-year increase of 4.3%. Bad news is this is the highest increase in PCE since 1991, all the way back when Pres. Bush was in office.  That is a 30-year high in the inflation rate as measured by PCE.

MarketWatch pointed this out in their 10/1/21 article: US inflation rises sharply again in August and stays at 30-year high.

Article also points out the official position of the Federal Reserve previously was inflation would moderate and drop back down to the 2% target by the end of the year.

Recent comments indicates they think inflation is going to be running at a high level until well into next year. Reason cited is continuing shortages in the supply chain and shortages of labor.

So, 30-year high and the kind inflation will continue into next year.

Leave a Comment

Your email address will not be published. Required fields are marked *