In this file:

 

·         WSJ: Powell Gets His Inflation

‘Transitory’ price increases are now up 5.4% year-over-year.

 

·         Supermarket News: Retailers turn to price optimization as inflation shows no signs of slowing down

… This widespread unpredictability has also wreaked havoc on traditional pricing practices based on supply and demand…

 

 

Powell Gets His Inflation

‘Transitory’ price increases are now up 5.4% year-over-year.

 

By The Editorial Board, The Wall Street Journal (WSJ)

July 13, 2021

 

How do you define transitory? Three months? A year? Or is it two? Inquiring minds want to know after Tuesday’s report that the consumer price index rose 0.9% in June. Consumer prices are now up 5.4% from a year earlier, so what the Federal Reserve means when it dismisses these price increases as “transitory” takes on growing economic and political significance.

 

The June increase was nearly twice what economic forecasters predicted, which isn’t reassuring. The inflation optimists are dismissing the June increase as the result of “special” factors that are likely to ease. Used car and truck prices rose 10.5% in the month, accounting for about half the increase in core CPI. No doubt vehicle prices won’t keep rising at that rate, but then that’s also what we were told when they rose 10% in April. This won’t reassure the non-affluent Americans who buy used cars.

 

Price increases were widespread across the economy, which suggests factors that may not be transitory. Food prices rose 0.8%, and energy prices 1.5% in the month. The Fed likes to strip out food and energy prices, which are volatile, to examine core inflation. But the core increase was also 0.9% in June.

 

Year-over-year core prices are up 4.5%, which is less than for all consumer prices, but is still well above the Fed’s target of 2% a year. The last time core prices rose 4.5% in a 12-month period was 1991 and the Fed’s benchmark short-term interest rate was above 5%. Today it’s near zero.

 

These price jolts aren’t likely to stir Fed Chairman Jerome Powell when he testifies on Capitol Hill this week. That’s because Mr. Powell is getting the inflation he wanted. The Fed’s new policy, which it unveiled last year, says that to achieve its 2% inflation target it is willing to tolerate inflation above that for some time. Congratulations, you’ve got it...

 

more, with subscription

https://www.wsj.com/articles/powell-gets-his-inflation-11626215534

 

 

Retailers turn to price optimization as inflation shows no signs of slowing down

AI pricing technologies can help to achieve revenue growth while still keeping customers happy

 

Matthew Pavich, Supermarket News 

Jul 13, 2021

 

As the U.S. economy recovers from the pandemic, prices for goods and services continue to climb, with the U.S. Department of Labor announcing on July 13 that the consumer price index for June increased 5.4% from a year earlier, the largest jump since August 2008. And, according to some experts, there’s a good chance inflation could remain elevated for years to come.

 

For retailers, inflation represents another hurdle in a long list of pandemic-induced volatilities. From panic buying and store closures to operating restrictions and supply chain shortages, to new consumer behavior shifts and revenge shopping, retailers have had a lot to contend with.

 

This widespread unpredictability has also wreaked havoc on traditional pricing practices based on supply and demand. And now, with the rising costs of goods squeezing already squeezed margins, retailers are turning to science — particularly, artificial intelligence (AI) pricing technologies — to find relief.

 

Rethink Your Response to Rising Costs ...

 

Take a Data-Driven Approach to Pricing during Inflation ...

 

Keep an Eye on Competitors’ and Customers’ Response to Inflation ... 

 

Turn Inflation into Opportunity ...

 

more

https://www.supermarketnews.com/technology/retailers-turn-price-optimization-inflation-shows-no-signs-slowing-down