Nearly two-thirds of consumer spending goes to services. That’s where the inflation action is.
By Wolf Richter for WOLF STREET.
Energy prices continued to drop, and prices of some goods dropped from the crazy spike in 2021, and food prices are increasing at a more moderate rate. We have seen these trends for months. But the element that makes up nearly two-thirds of consumer spending – services – the element that the Fed has been pointing out for months, remained at the worst level since 1984, and it kept core inflation at nose-bleed levels at well over twice the Fed’s target.
