Last week’s BLS Report revealed a significant jump in the inflation rate. The April All Cities index was 2.0%, up from 1.0% in February. The Seattle index jumped from 1.3%, to 2.6% during the same two-month period. The numbers show CPI edging up over the past year.
Most of our recent blogs on economic developments have emphasized the modest nature of recent economic improvement, but a series of reports over the past few weeks have signaled that the economy may, at last, be gathering a bit of momentum as it heads into 2014. While the government shutdown and debt ceiling debate seemed to place a chill on the economy this fall, these new economic releases have often exceeded economists’ expectations and point to a possible improved economy in the year ahead.
Last week, we reported the sudden drop in the National and Seattle CPI numbers and also discussed the potential impact on 2014 and 2015 negotiations. In October, we had also written about the 2% inflation target established by the Federal Reserve Bank as they use monetary policy to attempt to control inflation. We explained how the Fed seems to be falling short on those 2% goals.
In our last blog, we reported the significant drop in inflation reported in the October CPI report. With current CPI standing at 0.8% and 0.6% for the “All-Cities” and Seattle index, respectively, how might this sudden drop affect bargaining?
Just last month, we noted that inflation appeared to be “trending downward” at that inflation at 2% or less might be the “new normal.” This week’s CPI report further reflects that downward trend.
The Washington State Economic and Revenue Forecast Council just released their November report on the State and national economy and like their report last month, it provided mixed news about the state of the economy.
The Washington State Economic and Revenue Forecast Council just released their November report on the State and national economy and like their report last month, it provided mixed news about the state of the economy.
The latest report of the Washington State Economic and Revenue Forecast Council, provides a mixed picture of economic strength both nationally and locally.
As we had suggested in our last article on inflation trends, inflation seems to be trending downward. The CPI numbers confirm that trend. The latest inflation report both for Seattle and All-Cities is sub-2% and other recent inflation projections suggest that trend might continue. The recently released August CPI numbers report the National inflation index (All-Cities-W) at 1.5% and the Seattle-W even lower — 1.1%. A year ago, the corresponding were 1.7% (All-Cities) and 2.7% (Seattle).
Recent economic news has been characterized as tepid at best, but the most recent Washington State Department of Revenue report offers one of our clearest recent indicators that a solid economic recovery may be underway, at least in Washington State. The recently released Department of Revenue First Quarter Sales tax numbers show a statewide jump from the preceding 12 months (Quarter 1, 2012) of 8 percent.
