Janet Yellen on US inflation, in a live interview Wednesday morning from the UN climate conference in Glasgow:
US inflation will return to 'more normal levels' in the 'second half of next year.'
So 'transitory inflation' will have lasted about 18 months — at roughly 5%.
US inflation will return to 'more normal levels' in the 'second half of next year.'
So 'transitory inflation' will have lasted about 18 months — at roughly 5%.
2/ Two things are important:
• Ordinary Americans can handle 5% inflation of their milk & eggs, their juice & bread & chicken breasts. A $50 grocery bill is $52.50.
• The key is fuel inflation.
Winter heating bills across the US are going to soar—not 5%, more like 30%.
• Ordinary Americans can handle 5% inflation of their milk & eggs, their juice & bread & chicken breasts. A $50 grocery bill is $52.50.
• The key is fuel inflation.
Winter heating bills across the US are going to soar—not 5%, more like 30%.
3/ The Energy Information Administration (EIA) says those who rely on natural gas will see a 30% increase. Heating oil users will see an increase of 40%.
That's the increase in the price of the fuel — how much the winter costs, of course, depends on how cold it gets.
That's the increase in the price of the fuel — how much the winter costs, of course, depends on how cold it gets.
4/ But that's not a pack of chicken going from $5.50 to $6.35.
It's the utility bill for January going from $70 to $100, or from $150 to $230.
And you can easily rearrange your food bill, your food shopping.
Much harder to find ways to save on heat — except for long underwear.
It's the utility bill for January going from $70 to $100, or from $150 to $230.
And you can easily rearrange your food bill, your food shopping.
Much harder to find ways to save on heat — except for long underwear.
5/ I'm a Miami boy. I discovered long underwear when we lived in very chilly Philadelphia. The problem is, Dad wears long underwear and is toasty with the heat set at 67º.
No one else in the family thinks that's quite warm enough.
#ThermostatWars
No one else in the family thinks that's quite warm enough.
#ThermostatWars
6/ Those heating bills will hit real families with real costs that they'll notice.
That part of inflation will be a huge political issue for Democrats in the mid-term elections a year from now.
That part of inflation will be a huge political issue for Democrats in the mid-term elections a year from now.
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