-
Astonishingly different inflation across goods categories
Not all prices have increased in the same way during our current burst of inflation. This obviously holds true for specific, individual prices, but there are also marked differences when you look across broad categories. The FRED graph above shows the three major categories of durable goods, nondurable goods, and services. • Durable goods (in red) led the charge back in mid 2020 and have had the highest percent changes of the three categories so far. Now this price inflation is strongly declining. A large component here are used and new cars. • Nondurable goods (in blue) have had more inertia, but this price ... (full story)