“The Big Money Show” panel discusses whether small businesses are being squeezed by inflation, high borrowing costs and corporate dominance as profits soar on Wall Street and bankruptcies on Main Street reach record highs.
Inflation rose at a steady pace in December, remaining consistently above the Federal Reserve’s target rate as policymakers consider the case for rate cuts in the face of economic uncertainty.
The Bureau of Labor Statistics said Tuesday that the consumer price index (CPI) – a broad measure of the cost of everyday goods such as gasoline, groceries and rent – ​​rose 0.3% month-over-month in December and held steady at 2.7% year-over-year.
Both figures were cooler than the expectations of economists surveyed by LSEG.
So-called core prices, which exclude volatile measures of gasoline and food to better assess price growth trends, rose 0.2% from the previous month and 2.6% from a year ago. These figures were slightly below economists’ expectations of 0.3% and 2.7% respectively.
High inflation in recent years has put severe financial pressure on most American households, who are forced to pay more for daily necessities such as food and rent. Price increases are especially difficult for lower-income Americans, because they tend to spend a larger share of their already tight paychecks on necessities and have less flexibility to save.
Food prices rose 0.7% this month and were 3.1% higher than a year ago. The index for eating at home was 2.4% higher than a year ago, while the index for eating away from home rose 4.1% since last year. Both rose by 0.7% month on month.
Prices for meat, poultry and fish rose 6.9% from a year ago, while egg prices fell 8.2% from last year, as supply shortages caused by an outbreak of bird flu have eased. The fruit and vegetable index showed that prices increased by 0.5% on a monthly basis and were stable compared to a year ago.
This is a development story. Check back later for updates.
