Core inflation posts biggest gain in nearly 1 1/2 years

[userque]

Where goods are manufactured in the US using mainly automation, I agree with the premise of the article.

But where goods are manufactured manually, in other countries, for example; costs are still mostly tied to labor ... just not US labor. And when those labor costs rise in these foreign lands, so too will inflation in the US.

Tariffs can be considered an artificially added labor cost to the affected countries; a cost that will ultimately be passed back to the US. Inflation, and what follows it, is the result.

 

[TommyIV]

The Fed is fighting back saying inflation is not what it use to be..

The chief of the Dallas Federal Reserve on Tuesday said inflation is likely to remain low because of vast changes in the economy wrought by new technologies that have severed the historical link between wages and prices.

https://www.marketwatch.com/story/f...ll-employment-2019-07-16?mod=newsviewer_click

 

[tsptalk]

Uh, oh Fed. Now inflation is heating up? Unemployment historically low? Stocks at all time highs? And a rate cut is a foregone conclusion? They don't have many bullets in their arsenal for when there is an economic crisis, and now they're shooting bullets in the air?


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US core inflation posts biggest gain in nearly 1 1/2 years

U.S. underlying consumer prices increased by the most in nearly 1 1/2 years in June.
The rise comes amid solid gains in the costs of a range of goods and services, but will probably not change expectations the Federal Reserve will cut interest rates this month.

The overall CPI edged up 0.1% last month, held back by cheaper gasoline and food prices

https://www.cnbc.com/2019/07/11/consumer-price-index-june-2019.html