![](https://i.imgur.com/CLvY2jA.png")
15-09-2022, 10:00 AM
By CHRISTOPHER RUGABER
yesterday
WASHINGTON (AP) — U.S. inflation is showing signs of entering a more stubborn phase that will likely require drastic action by the Federal Reserve, a shift that has panicked financial markets and heightens the risks of a recession.
Some of the longtime drivers of higher inflation — spiking gas prices, supply chain snarls, soaring used-car prices — are fading. Yet underlying measures of inflation are actually worsening.
The ongoing evolution of the forces behind an inflation rate that’s near a four-decade high has made it harder for the Fed to wrestle it under control. Prices are no longer rising because a few categories have skyrocketed in cost. Instead, inflation has now spread more widely through the economy, fueled by a strong job market that is boosting paychecks, forcing companies to raise prices to cover higher labor costs and giving more consumers the wherewithal to spend.
......
When inflation is driven mainly by demand, it can require more drastic action from the Fed than when it’s driven mainly by supply shocks, such as an oil supply disruption, which can often resolve on their own.
Read full report at: https://apnews.com/article/inflation-eco...38f0bd444e
yesterday
WASHINGTON (AP) — U.S. inflation is showing signs of entering a more stubborn phase that will likely require drastic action by the Federal Reserve, a shift that has panicked financial markets and heightens the risks of a recession.
Some of the longtime drivers of higher inflation — spiking gas prices, supply chain snarls, soaring used-car prices — are fading. Yet underlying measures of inflation are actually worsening.
The ongoing evolution of the forces behind an inflation rate that’s near a four-decade high has made it harder for the Fed to wrestle it under control. Prices are no longer rising because a few categories have skyrocketed in cost. Instead, inflation has now spread more widely through the economy, fueled by a strong job market that is boosting paychecks, forcing companies to raise prices to cover higher labor costs and giving more consumers the wherewithal to spend.
......
When inflation is driven mainly by demand, it can require more drastic action from the Fed than when it’s driven mainly by supply shocks, such as an oil supply disruption, which can often resolve on their own.
Read full report at: https://apnews.com/article/inflation-eco...38f0bd444e
