Wednesday, April 29, 2020

First Quarter Price Inflation Climbs by 1.8%

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.


1 comment:

  1. 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.