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Strategies & Market Trends : Currents of Currency -- Ignore unavailable to you. Want to Upgrade?


To: Ahda who wrote (395)5/29/2015 1:15:23 PM
From: Ahda  Read Replies (1) | Respond to of 594
 
Inflation Expectations

Americans expected an inflation rate of 2.8 percent in the next year, up from 2.6 percent in April. Over the next five to 10 years, they expect a 2.8 percent rate of inflation, compared with 2.6 percent in the previous month.

The Michigan report corroborates the Bloomberg Consumer Comfort Index, which fell for a seventh straight week in the period ended May 24. Attitudes about whether it was a good time to spend slumped by the most since 2011.

While the Conference Board’s consumer confidence index advanced to a reading of 95.4 this month from April’s 94.3, the measure is down from a more than seven-year high of 103.8 reached in January.

Weaker confidence helps explain why consumer spending has been slow to accelerate even after months of savings from lower gasoline costs. Retail sales barely budged in April and followed a 0.2 percent drop from January through March that marked the first quarterly decline in almost three years.

Weaker confidence or inflation takes us back to price of bread and milk and how to stretch a limited income and not stretch credit card use. The peer to peer economy can mean more people with lower incomes and less taxes for the government. It is difficult to judge this segment of the economy as it is filled with innovation. How many top apple watches were sold and how many google virtual cardboard boxes could be. One has to figure out how to give self a raise then you enter into the world of competition where your competitor tries to reduce his price.

I believe we are headed for inflation that can mean curtailed wage increases in certain areas of the economy along with a possible increase in actual unemployment