Connect with us

Business

Lower gas prices provide relief to inflation-weary consumersExBulletin

Lower gas prices provide relief to inflation-weary consumersExBulletin

 


NPR’s Leila Fadel speaks with economist Julia Coronado, founder of economic research service Macropolicy Perspectives, about the impact of gasoline prices on inflation and the economy.



LEILA FADEL, HOST:

We will now turn to economist Julia Coronado for an overview. She is the founder of an economic research service, Macropolicy Perspectives. Hello Julia. Thank you for being on the program.

JULIA CORONADO: With pleasure. Hello.

FADEL: So like I said, I really want to start with the big picture here. What do these changes in gas prices really mean for the global economy?

CORONADO: Well, they relieve consumers. So consumers have been in a rush lately. Wage growth was quite strong, but inflation rose a bit faster. Consumers have therefore lost ground in terms of purchasing power. So with lower gasoline prices and potentially some relief in food prices, consumers will have a bit more money to spend on other goods and services, and that’s good for the economy. in general.

FADEL: And why do you expect food prices to start falling as well?

CORONADO: Much like gasoline prices, some of these global moves we’ve seen in commodity markets have indicated falling food prices. It’s taking longer for that to trickle down to grocery prices, but we’ve seen some relief in those wholesale commodity markets.

FADEL: OK, so good news for gasoline, maybe good news for food, but there is another element that is expensive for so many people, and that is housing, which you have to pay for. What are we waiting for there?

CORONADO: That’s right. So we are witnessing the early stages of a housing correction. We’ve seen interest rates – the Federal Reserve, trying to keep inflation down, has raised interest rates quite substantially. Rising mortgage rates cooled demand for housing, led to prices – some pressure on prices. It’s still early. This should affect rents over time. This is a longer event. It usually takes time for this to happen. So we’re probably looking at rent relief next year, really 2023.

FADEL: Now, we also heard yesterday of a drop in annual inflation from 9.1% to 8.5% last month. Does this change the Federal Reserve’s plans to possibly continue raising interest rates? Or what would the interest rate plans be if this were to continue?

CORONADO: I think that confirms to the Fed that its plan is on track.

FADEL: Alright.

CORONADO: So they’ve always signaled that more interest rate hikes are coming and they’ll eventually stop somewhere around 3 to 3 1/2%, and that’s another percent d ‘here. But that’s based on the expectation that their policy will bring inflation down over time, and that seems to be having an effect. So that’s good news. It has an effect. We are witnessing a drop in inflation. It doesn’t mean you quit now. This means that you go ahead with your plan and complete it in order to reach your ultimate goal, which is inflation closer to 2%, not 8%.

FADEL: Now, what does this – all these things together – tell us about the direction the economy is taking?

CORONADO: Yeah, so there’s been a lot of talk about recession. It is clear from the labor market that we are not currently in a recession. Recessions usually mean job losses and rising unemployment. We are not there. In fact, we saw the unemployment rate drop in July. So that’s good news. We are not in a recession yet. But with the Fed raising interest rates, with areas like housing cooling and inflation still quite high, it’s a delicate balancing act. So we are at a tricky inflection point. Falling gas prices are good news. This should contribute to the resilience of the economy. But, you know, we’re in a risky moment right now.

FADEL: A risky moment. Now, a lot of the things we’re talking about are really short term. When you look at the long term view and this delicate balance, what do you think, what are you looking for in the economy?

CORONADO: Well, we’ve never seen such a strong labor market. I’m a bit optimistic that it can win out and keep us on track. Even though we are going through difficult times, we can avoid a recession.

FADEL: Economist Julia Coronado with Macropolicy Perspectives. Thanks a lot.

CORONADO: With pleasure.

Copyright © 2022 NRP. All rights reserved. Visit the Terms of Use and Permissions pages of our website at www.npr.org for more information.

NPR transcripts are created in peak time by an NPR contractor. This text may not be in its final form and may be updated or revised in the future. Accuracy and availability may vary. The authoritative recording of NPR’s programming is the audio recording.

Sources

1/ https://Google.com/

2/ https://www.npr.org/2022/08/11/1116879984/lower-gas-prices-provide-some-relief-to-inflation-weary-consumers

The mention sources can contact us to remove/changing this article

What Are The Main Benefits Of Comparing Car Insurance Quotes Online

LOS ANGELES, CA / ACCESSWIRE / June 24, 2020, / Compare-autoinsurance.Org has launched a new blog post that presents the main benefits of comparing multiple car insurance quotes. For more info and free online quotes, please visit https://compare-autoinsurance.Org/the-advantages-of-comparing-prices-with-car-insurance-quotes-online/ The modern society has numerous technological advantages. One important advantage is the speed at which information is sent and received. With the help of the internet, the shopping habits of many persons have drastically changed. The car insurance industry hasn't remained untouched by these changes. On the internet, drivers can compare insurance prices and find out which sellers have the best offers. View photos The advantages of comparing online car insurance quotes are the following: Online quotes can be obtained from anywhere and at any time. Unlike physical insurance agencies, websites don't have a specific schedule and they are available at any time. Drivers that have busy working schedules, can compare quotes from anywhere and at any time, even at midnight. Multiple choices. Almost all insurance providers, no matter if they are well-known brands or just local insurers, have an online presence. Online quotes will allow policyholders the chance to discover multiple insurance companies and check their prices. Drivers are no longer required to get quotes from just a few known insurance companies. Also, local and regional insurers can provide lower insurance rates for the same services. Accurate insurance estimates. Online quotes can only be accurate if the customers provide accurate and real info about their car models and driving history. Lying about past driving incidents can make the price estimates to be lower, but when dealing with an insurance company lying to them is useless. Usually, insurance companies will do research about a potential customer before granting him coverage. Online quotes can be sorted easily. Although drivers are recommended to not choose a policy just based on its price, drivers can easily sort quotes by insurance price. Using brokerage websites will allow drivers to get quotes from multiple insurers, thus making the comparison faster and easier. For additional info, money-saving tips, and free car insurance quotes, visit https://compare-autoinsurance.Org/ Compare-autoinsurance.Org is an online provider of life, home, health, and auto insurance quotes. This website is unique because it does not simply stick to one kind of insurance provider, but brings the clients the best deals from many different online insurance carriers. In this way, clients have access to offers from multiple carriers all in one place: this website. On this site, customers have access to quotes for insurance plans from various agencies, such as local or nationwide agencies, brand names insurance companies, etc. "Online quotes can easily help drivers obtain better car insurance deals. All they have to do is to complete an online form with accurate and real info, then compare prices", said Russell Rabichev, Marketing Director of Internet Marketing Company. CONTACT: Company Name: Internet Marketing CompanyPerson for contact Name: Gurgu CPhone Number: (818) 359-3898Email: [email protected]: https://compare-autoinsurance.Org/ SOURCE: Compare-autoinsurance.Org View source version on accesswire.Com:https://www.Accesswire.Com/595055/What-Are-The-Main-Benefits-Of-Comparing-Car-Insurance-Quotes-Online View photos

ExBUlletin

to request, modification Contact us at Here or [email protected]