Home Depot is bullish on inflation:
Chief Executive Ted Decker said on a call with analysts Tuesday that commodity inflation in the company’s second quarter declined year over year and is down meaningfully from peak levels. Inflation in product and transportation costs is coming down, and new requests from suppliers for price increases are “negligible” at this point, he said.
....“We’re encouraged that the cycle of inflation is essentially behind us,” he said.
"Negligible." In other words, close to zero. This is promising real-world confirmation that inflation in goods really is in the rear-view mirror.
So what's the betting on Jerome's target now - another half point before he considers the job done?
I have my first check for $13,000. I have a lot of energy so I always have something first. y6 Now I’m going to work a lot harder and barely finish next week’s episode. q I strongly encourage everyone to sign up. .
periods,……………………. http://bizpay68.blogspot.com
Post-pandemic commodity pricing should be deflationary. Or was that tracking of wood commodity prices (going up and then back down) all for naught?
In this sense, HD seems to be signaling the tightening of healthy profit margins and the end of profit-driven inflation, no?
Commodity pricing has been deflationary. The year/year PPI inflation rate was -9.4% in June:
https://fred.stlouisfed.org/graph/?g=17Mbn
Oil price dropped off greatly from its high although it has started back up again.
But if you look at the raw PPI over time you will see that it doesn't go down for very long. Most commodity prices always increase over the long term.
A good deal of the inflation in 2021 was from shipping constrictions, not actual commodity shortages.
Ah but he's not going to cut prices is he?
That's why I bought my paving at Lowe's Mr CEO fuckstick.
Gas prices are still at least 50% higher than they were under Trump. I’m not a Trump fan and I don’t necessarily blame Biden for all of the increase, but this is what the MAGA people will point to.
And while it's far from reliable, especially at this point in the quarter, Atlanta Reserve is forecasting an annual GDP growth rate of 5% for the September quarter. Some recession!
The Fed has been pretty clear that wages/income are the real focus. As long as wages keep rising, there will be many in the Fed who see a problem that needs fixin.
I think this was directed at you and your constant adherence and claims to orthodoxy.
Also, if I can't nudge you to pay attention to the Beveridge Curve, maybe Brad DeLong's post will?
And Biden's approval rating on his "handling" of the economy is 36%.