The U.S. economy, as measured by the GDP, shrank at a 4.8% rate in the first quarter as the coronavirus spread, the steepest contraction since the last recession. The decline in consumer services was 10.2%.
However, price advances, as measured by the GDP price deflator, were strong.
Dean Baker, senior economist at the Center for Economic and Policy Research, notes:
And this when the Federal Reserve's aggressive new money printing was barely getting off the ground, wait for the next few months.#GDP core PCE deflator rose at 1.8 percent rate in quarter, suggests that rising prices in items being purchased offset sharp declines in hotel, airline prices and other items with sharp drops in demand— Dean Baker (@DeanBaker13) April 29, 2020
-RW
And that is without rent prices rising yet. My lease was up in May. I just emailed the apartment manager that the prices they offered me in March for a 12 month renewal, which was an increase of 5.3%, was a bit much and asked for a better offer. Got a phone call shortly thereafter offering another 12 months with ZERO price increase. Too easy! Should have asked for even more.
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