Economy looms large as United Kingdom heads to polls

Jul 3, 2024
Voting in the U.K.'s general election takes place on Thursday, and the economy has been at the center of the campaign.
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Why the last mile in the Federal Reserve's inflation fight has been uphill

It's taking a longer time for the broader economy to feel the impact of higher interest rates, in part because of debts locked in when rates were lower.
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Offshore wind industry hammered by inflation, interest rates

Jun 17, 2024
Economics has frustrated efforts to expand the turbine fleet and meet clean energy goals. But the industry is adjusting.
Michael Brown, a wind energy executive, says construction plans are becoming more flexible after the disruptions of the last few years. Above, a crane loads turbine blades onto a barge at a Massachusetts port.
Daniel Ackerman/Marketplace

How does the cost of housing figure into the consumer price index? It's complicated.

Jun 14, 2024
Owners' equivalent rent measures the market cost of living in a home — which is a bit different from how much we actually spend on housing.
The cost of housing makes up more than a third of the CPI.
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Bad news for the job market could be good news for inflation

Jun 13, 2024
Initial jobless claims hit a 10-month high last week. If that takes pressure off prices, the Federal Reserve might reduce interest rates.
Higher unemployment can contribute to the cooling of inflation, but it comes at the expense of people's livelihoods.
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Why is the Fed still so cautious about interest rates?

Jun 13, 2024
Despite the CPI coming in unexpectedly low, the Federal Reserve needs more convincing that inflation is really getting better.
"Consumers change their buying habits, they move from steak to chicken, from the upper shelf down to the lower shelf," said Dan North with Allianz Trade about inflation.
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How the Federal Reserve's inflation fight today compares with the '70s and '80s

Decades ago, the Fed was battling double-digit inflation, and Chair Paul Volcker took aggressive action that drove interest rates way up.
As Fed chair, Paul Volcker aggressively fought raging inflation, driving interest rates far higher than they are today. Above, Volcker in 2005.
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For public good, not for profit.

What do people think causes inflation?

Jun 12, 2024
A survey reveals the general public doesn't always agree with economists on what causes higher prices.
"People have a very valid lived experience that just sometimes doesn't align with our official statistics," said Harvard economist Stefanie Stantcheva.
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Small businesses are apprehensive these days

Jun 11, 2024
The NFIB reports a spike in its uncertainty index, perhaps triggered by thrifty consumers and the upcoming election.
The feeling of certainty about future business conditions has waned among merchants, according to the National Federation of Independent Business.
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Austin Powers and Dr. Evil can teach us to adjust for inflation

Jun 11, 2024
Don’t be like Dr. Evil, who didn’t check the CPI before making ransom demands.
"One meeellion dollars!"
Still from "Austin Powers: International Man of Mystery"