Entries by Wolf Richter

Producer Prices Blow Out

Estimated Reading Time: 2 minutes

And companies have been reporting that they’re able to pass on those surging costs. So here we go with inflation. Inflation that producers are experiencing is now blowing out. The surging input costs and the ability to pass on those higher input costs that have been reported by company executives as part of the services PMIs [Purchase […]

The Most Splendid Housing Bubbles in America: “House-Price Inflation” in all its Glory. March Update

Estimated Reading Time: 2 minutes

Dollar’s Purchasing Power Swoons, but CPI ignores house price inflation. House prices rose by 11.2% from a year ago, the biggest increase since the peak of Housing Bubble 1 in 2006, according to today’s National Case-Shiller Home Price Index for January. The index is a good measure of “house-price inflation” because it’s based on the “sales pairs” […]

FHA Mortgage Delinquencies Hit 17.5%. In 30 Metros, over 20%: On the Other Side of a Red-Hot Housing Market

Estimated Reading Time: 2 minutes

Everything is on ice. But when forbearance ends, forced sellers or lenders will put millions of these homes on the market. On the other side of the red-hot housing market, a historic delinquency problem has been fermenting since last spring, largely put on ice and on hold by forbearance programs, waiting to be dealt with. […]

Just Don’t Expect “Pent-up Demand” from Consumers. Here’s Why

Estimated Reading Time: 2 minutes

Editor’s Note: Many argue that current stock market action is discounting a huge post-pandemic surge in spending.  This report casts doubt on this assumption. Free money whipped consumers into a rollicking eight-month splurge on goods. There’s nothing “pent up.” And services are not a shoo-in for “pent-up demand.” Give Americans some free money, and tell […]

Dollar’s Purchasing Power Drops to Record Low Despite Aggressive “Hedonic Quality Adjustments”

Estimated Reading Time: 2 minutes

Spiking prices for new and used vehicles under the microscope. The “Purchasing Power of the Consumer Dollar” – part of the Bureau of Labor Statistics’ Consumer Price Index data released today – is the politically incorrect mirror image of inflation in consumer prices, as measured by the Consumer Price Index (CPI). By wanting to increase consumer […]

Inflation Pressures Heat Up Even in Services

Estimated Reading Time: < 1 minute

There is still the theme that some of it is just temporary. Big parts of the services sector – such as restaurants, entertainment, lodging, and travel – have been hit hard during this crisis. Other parts of the services industries – such as real estate, services related to eCommerce, transportation services, video games, streaming services, […]