We invite you to review SVN’s latest economic update providing information on Inflation, Jobs Report, Construction Spending, and more!
1. CPI INFLATION
• The Consumer Price Index (CPI) rose by 7.0% year-over-year in December, its highest increase in almost four decades. CPI climbed by 0.5% month-over-month in December on a seasonally adjusted basis, 30 basis points lower than November’s 0.8% increase.
• Shelter and used vehicles contributed the largest 12-month gain to the index in December, rising by 4.1% and 37.3%, respectively. Energy costs have risen by 29.3% since December 2020, while food costs have also continued to climb steeply, registering a 6.3% year-over-year increase.
• The “Core-CPI” figure, which excludes food and energy price increases, rose by 5.5% year-over-year and 0.6% from November.
• In separate statements given during their respective confirmation hearings in recent days, Fed Chair Jerome Powell and Vice-Chair nominee Lael Brainard signaled a heightened concern about inflation and more pointed guidance toward combating it. Fighting inflation is the Fed’s “most important task,” according to a statement by Brainard during a press conference on January 13th. “We are taking actions that I have confidence will be bringing inflation down while continuing to allow the labor market to return to full strength over time.”
