ASA Podcast: What You Should Know About Inflation Rates

ASA Podcast: What You Should Know About Inflation Rates
 

On the most recent episode of the “Keeping it Real with Dr. Kuehl” economic update podcast for ASA members, ASA Chief Economist Dr. Chris Kuehl talks about the latest inflation news. What does it mean, and what does it not mean?  
 

Dr. Kuehl started off the podcast by talking about the recent inflation numbers. They were higher than expected, but why? Chris talks about two different kinds of inflation: core inflation and headline inflation. Core inflation is everything except food and fuel. Headline inflation counts all including food and fuel – which is what most people spend their money on. The increase on inflation came off the service sector… meaning wages. The labor shortage has contributed to this, and the wage price spiral is what scares the Fed the most.
 

Chris tells ASA members why our industry is or is not affected… the reaction for us is an expectation that rates WILL come down. If that expectation is holding, companies are delaying their projects and waiting for the sale. Construction projects are suddenly running into a lot of projects but delayed. If the Fed begins to back off on lowering rates, it will trigger people to get back into these projects. Chris ends the podcast saying inflation is not defeated, but we are seeing improvement in areas that are notorious volatile…
 

Dr. Kuehl produces three free economic update podcasts each month for ASA members (on Friday mornings). The podcasts are available in the MyASA portal at www.asa.net/myasa and through all traditional podcast hosting platforms. Have a question or topic for Chris Kuehl that you would like answered on this podcast? Email it to Bri Baresel at bbaresel@asa.net.
 

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