loss of purchasing power over time, meaning your dollar will not go as far tomorrow as it did today. It is typically expressed as the annual change in prices for everyday goods and services such as food, furniture, apparel, transportation costs and toys.

Americans found themselves with a lot of money in the bank, and as they spent that money on goods, demand collided with a global supply chain that was too fragile to catch up.

Virus outbreaks shut down factories, ports faced backlogs and a dearth of truckers roiled transit routes. Americans still managed to buy more goods than ever before in 2021, and foreign factories sent a record sum of products to U.S. shops and doorsteps. But all that shopping wasn’t enough to satisfy consumer demand.

stop spending at the start of the pandemic helped to swell savings stockpiles.

And the Federal Reserve’s interest rates are at rock bottom, which has bolstered demand for big purchases made on credit, from houses and cars to business investments like machinery and computers. Families have been taking on more housing and auto debt, data from the Federal Reserve Bank of New York shows, helping to pump up those sectors.

But if stimulus-driven demand is fueling inflation, the diagnosis could come with a silver lining. It may be easier to temper consumer spending than to rapidly reorient tangled supply lines.

People may naturally begin to buy less as government help fades. Spending could shift away from goods and back toward services if the pandemic abates. And the Fed’s policies work on demand — not supply.

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Can Anyone Satisfy Amazon’s Craving for Electric Vans?

That number is growing quickly. Amazon is several years — and tens of billions of dollars — into a huge push to deliver packages, shifting away from relying on large carriers like UPS. To begin the expansion, Amazon ordered 20,000 diesel Sprinter vans from Mercedes-Benz.

Through its network of contractors, Amazon now delivers more than half of its orders globally, and far more in the United States. Amazon has six times as many delivery depots now as it did in 2017, with at least 50 percent more new facilities set to open this year, according to data from MWPVL, a logistics consultancy.

That logistics boom, accelerated by the pandemic’s shift to online shopping, multiplies the challenges the company faces in meeting its pledge to reduce its climate impact. Its vow to make half of its deliveries carbon-neutral by 2030 is part of the company’s broader pledge to be net-carbon-neutral by 2040.

“Electrification of their delivery fleet is a really important part of that strategy,” said Anne Goodchild, who leads the University of Washington’s work on supply chain, logistics and freight transportation.

Delivery vans are well suited to electric propulsion because they usually travel 100 miles or under in a day, which means they don’t need large battery packs that add to the cost of electric cars. Delivery trucks are often used during the day and can be recharged overnight, and usually require less maintenance than gasoline trucks. Electric vehicles don’t have transmissions and certain other mechanical components that wear out quickly in the heavy stop-and-go typical in delivery routes.

In September 2019, when Mr. Bezos announced Amazon’s huge Rivian order — the largest ever order of electric vehicles — he positioned it as central to Amazon’s commitment to reduce its carbon footprint. At the time, he said he expected the 100,000 vans to be on the road “by 2024.”

Amazon invested at least $1.3 billion in Rivian, which Amazon says is supposed to make 10,000 vans as early as this year. Amazon also locked up exclusive rights to Rivian’s commercial vans for four years, with the right of first refusal for two years after that. The companies have been testing the vans for almost a year.

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Why Tesla Soared as Other Automakers Struggled to Make Cars

For much of last year, established automakers like General Motors and Ford Motor operated in a different reality from Tesla, the electric car company.

G.M. and Ford closed one factory after another — sometimes for months on end — because of a shortage of computer chips, leaving dealer lots bare and sending car prices zooming. Yet Tesla racked up record sales quarter after quarter and ended the year having sold nearly twice as many vehicles as it did in 2020 unhindered by an industrywide crisis.

Tesla’s ability to conjure up critical components has a greater significance than one year’s car sales. It suggests that the company, and possibly other young electric car businesses, could threaten the dominance of giants like Volkswagen and G.M. sooner and more forcefully than most industry executives and policymakers realize. That would help the effort to reduce the emissions that are causing climate change by displacing more gasoline-powered cars sooner. But it could hurt the millions of workers, thousands of suppliers and numerous local and national governments that rely on traditional auto production for jobs, business and tax revenue.

Tesla and its enigmatic chief executive, Elon Musk, have said little about how the carmaker ran circles around the rest of the auto industry. Now it’s becoming clear that the company simply had a superior command of technology and its own supply chain. Tesla appeared to better forecast demand than businesses that produce many more cars than it does. Other automakers were surprised by how quickly the car market recovered from a steep drop early in the pandemic and had simply not ordered enough chips and parts fast enough.

G.M. and Stellantis, the company formed from the merger of Fiat Chrysler and Peugeot, all sold fewer cars in 2021 than they did in 2020.

Tesla’s production and supply problems made it an industry laughingstock. Many of the manufacturing snafus stemmed from Mr. Musk’s insistence that the company make many parts itself.

Other car companies have realized that they need to do some of what Mr. Musk and Tesla have been doing all along and are in the process of taking control of their onboard computer systems.

Mercedes, for example, plans to use fewer specialized chips in coming models and more standardized semiconductors, and to write its own software, said Markus Schäfer, a member of the German carmaker’s management board who oversees procurement.

traced to the outbreak of Covid-19, which triggered an economic slowdown, mass layoffs and a halt to production. Here’s what happened next:

It also helps that Tesla is a much smaller company than Volkswagen and Toyota, which in a good year produce more than 10 million vehicles each. “It’s just a smaller supply chain to begin with,” said Mr. Melsert, who is now chief executive of American Battery Technology Company, a recycling and mining firm.

recall more than 475,000 cars for two separate defects. One could cause the rearview camera to fail, and the other could cause the front hood to open unexpectedly. And federal regulators are investigating the safety of Tesla’s Autopilot system, which can accelerate, brake and steer a car on its own.

“Tesla will continue to grow,” said Stephen Beck, managing partner at cg42, a management consulting firm in New York. “But they are facing more competition than they ever have, and the competition is getting stronger.”

The carmaker’s fundamental advantage, which allowed it to sail through the chip crisis, will remain, however. Tesla builds nothing but electric vehicles and is unencumbered by habits and procedures that have been rendered obsolete by new technology. “Tesla started from a clean sheet of paper,” Mr. Amsrud said.

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Supply Chain Woes Prompt a New Push to Revive U.S. Factories

When visitors arrive at the office of America Knits in tiny Swainsboro, Ga., the first thing they see on the wall is a black-and-white photo that a company co-founder, Steve Hawkins, discovered in a local antiques store.

It depicts one of a score of textile mills that once dotted the area, along with the workers that toiled on its machines and powered the local economy. The scene reflects the heyday — and to Mr. Hawkins, the potential — of making clothes in the rural South.

Companies like America Knits will test whether the United States can regain some of the manufacturing output it ceded in recent decades to China and other countries. That question has been contentious among workers whose jobs were lost to globalization. But with the supply-chain snarls resulting from the coronavirus pandemic, it has become intensely tangible from the consumer viewpoint as well.

Mr. Hawkins’s company, founded in 2019, has 65 workers producing premium T-shirts from locally grown cotton. He expects the work force to increase to 100 in the coming months. If the area is to have an industrial renaissance, it is so far a lonely one. “I’m the only one, the only crazy one,” Mr. Hawkins said.

General Motors disclosed in December that it was considering spending upward of $4 billion to expand electric vehicle and battery production in Michigan. Just days later, Toyota announced plans for a $1.3 billion battery plant in North Carolina that will employ 1,750 people.

little change in the balance of trade or the inclination of companies operating in China to redirect investment to the United States.

Since the pandemic began, however, efforts to relocate manufacturing have accelerated, said Claudio Knizek, global leader for advanced manufacturing and mobility at EY-Parthenon, a strategy consulting firm. “It may have reached a tipping point,” he added.

Decades of dependence on Asian factories, especially in China, has been upended by delays and surging freight rates — when shipping capacity can be found at all.

Backups at overwhelmed ports and the challenges of obtaining components as well as finished products in a timely way have convinced companies to think about locating production capacity closer to buyers.

“It’s absolutely about being close to customers,” said Tim Ingle, group vice president for enterprise strategy at Toyota Motor North America. “It’s a big endeavor, but it’s the future.”

New corporate commitments to sustainability are also playing a role, with the opportunity to reduce pollution and fossil fuel consumption in transportation across oceans emerging as a selling point.

Repositioning the supply chain isn’t just an American phenomenon, however. Experts say the trend is also encouraging manufacturing in northern Mexico, a short hop to the United States by truck.

traced to the outbreak of Covid-19, which triggered an economic slowdown, mass layoffs and a halt to production. Here’s what happened next:

“Incentives to help level the playing field are a key piece,” said David Moore, chief strategy officer and senior vice president at Micron. “Building a leading-edge memory fabrication facility is a sizable investment; it’s not just a billion or two here and there. These are major decisions.”

In the aftermath of the coronavirus and restrictions on exports of goods like masks, moving manufacturing closer to home is also being viewed as a national security priority, said Rick Burke, a managing director with the consulting firm Deloitte.

“As the pandemic continues, there’s a realization that this may be the new normal,” Mr. Burke said. “The pandemic has sent a shock wave through organizations. It’s no longer a discussion about cost, but about supply-chain resiliency.”

Despite the big announcements and the billions being spent, it could take until the late 2020s before the investments yield a meaningful number of manufacturing jobs, Mr. Burke said — and even then, raw materials and some components will probably come from overseas.

Still, if the experts are correct, these moves could reverse decades of dwindling employment in American factories. A quarter of a century ago, U.S. factories employed more than 17 million people, but that number dropped to 11.5 million by 2010.

Since then, the gains have been modest, with the total manufacturing work force now at 12.5 million.

But the sector remains one of the few where the two-thirds of Americans who lack a college degree can earn a middle-class wage. In bigger cities and parts of the country where workers are unionized, factories frequently pay $20 to $25 an hour compared with $15 or less for jobs at warehouses or in restaurants and bars.

Even in the rural South, long resistant to unions, manufacturing jobs can come with a healthy salary premium. At America Knits, a private-label manufacturer that sells to retailers including J. Crew and Buck Mason, workers earn $12 to $15 an hour, compared with $7.50 to $11 in service jobs.

The hiring is being driven by strong demand for the company’s T-shirts, Mr. Hawkins said, as well as by a recognition among retailers of the effect of supply-chain problems on foreign sources of goods.

“Retailers have opened their eyes more and are bringing manufacturing back,” he said. “And with premium T-shirts selling for $30 or more, they can afford to.”

A few years ago, Julie Land said she would naturally have looked to Asia to expand production of outerwear and other goods for her Canadian company, Winnipeg Stitch Factory, and its clothing brand, Pine Falls.

Instead, the 12-year-old business is opening a plant in Port Gibson, Miss., in 2022. Fabric will be cut in Winnipeg and then shipped to Port Gibson to be sewn into garments like jackets and sweaters. The factory will be heavily automated, Ms. Land said, enabling her company to keep costs manageable and compete with overseas workshops.

“Reshoring is not going to happen overnight, but it is happening, and it’s exciting,” she said. “If you place an order offshore, there is so much uncertainty with a longer lead time. All of that adds up.”

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Battling for Bolivia’s Lithium That’s Vital to Electric Cars

“The amount of lithium we need in any of our climate goals is incredible,” said Anna Shpitsberg, the U.S. deputy assistant secretary of state for energy transformation. “Everyone is trying to build up their supply chains and think about how to be strategic.”

But Washington has little sway in Bolivia, whose leaders have long disagreed with the American approach to drug policy and Venezuela. That may explain why some energy executives do not think Bolivia is worth the risk.

“You’ve had 30 years’ worth of projects in Bolivia with almost nothing to show,” said Robert Mintak, chief executive of Standard Lithium, a publicly traded mining company based in Vancouver, British Columbia, referring to lithium development efforts dating back to 1990. “You have a landlocked country with no infrastructure, no work force, political risk, no intellectual property protection. So as a developer, I would choose someplace else that is safer.”

Mr. Egan sees the odds differently.

That Mr. Egan has gotten this far is a marvel. He learned about Bolivian lithium only by chance when he and a friend crisscrossed South America as tourists in 2018.

When they got to the salt flats, a guide explained that they were standing on the world’s largest lithium reserve. “I thought, ‘I don’t know how I’m going to do this, but I need to be involved,’” Mr. Egan said.

He had tried his hand as a sports and music agent and ran a small investment fund at the time. He had invested in Tesla in 2013 at $9 a share; it now trades around $975. (He would not reveal how many shares he had bought and how many he still had.)

But he felt that he wasn’t achieving much. Before Mr. Egan traveled to South America, his father, Michael, the founder of Alamo Rent A Car, advised him to make two lists — of his five biggest passions and of the five industries he thought would grow fastest in the coming decades. Renewable energy was on both lists.

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High Gas Prices Force Sacrifices, Like Travel and Dining Out

A driver in Belleville, N.J., cut his cable and downsized his apartment to save money for gas. A retiree in Vallejo, Calif., said he had stopped driving to go fishing because the miles cost too much in fuel. An auto repairman in Toms River, N.J., doesn’t go to restaurants as often. And an Uber Eats deliveryman said he couldn’t afford frequent visits to his family and friends, some of whom live 60 miles away.

“Times are tough right now,” Chris Gonzalez, 31, the Uber Eats driver, said as he filled up his tank at a Safeway gas station off Interstate 80 in California.

Millions of American drivers have acutely felt the recent surge in gas prices, which last month hit their highest level since 2014. The national average for a gallon of gas is $3.41, which is $1.29 more than it was a year ago, according to AAA. Even after a recent price dip in crude oil, gasoline remains 7 cents more per gallon than it was a month ago.

While consumers are seeing a steady rise in the prices of many goods and services, the cost of gas is especially visible. It is displayed along highways across the country, including in areas where a gallon has climbed as high as $7.59.

survey from the fuel savings platform GasBuddy.

instructed the Federal Trade Commission this week to investigate why prices at the pump haven’t declined as much as might be expected, citing the possibility of “illegal conduct” by oil and gas companies. The administration is also facing calls from Congress to tap the country’s Strategic Petroleum Reserve, which the Senate majority leader, Chuck Schumer, said would help struggling Americans.

Gas prices have gone up in part because of fluctuations in supply and demand. Demand for oil fell precipitously in the early months of the pandemic, so the Organization of the Petroleum Exporting Countries and other oil-producing nations cut production. In the United States, reduced demand led to a substantial decline in drilling; the country’s oil rig count was down nearly 70 percent in summer 2020.

But over the past year, demand for oil recovered far faster than OPEC restored its production, and crude oil prices doubled to as much as $84 a barrel. (Since Nov. 9, the price has declined to just over $76.)

higher in the past; in 2008, the national average rose above $4.10 per gallon. (Adjusted for inflation, that would be equivalent to $5.16 today.) They’re optimistic that the increase in travel and gas demand is a reflection of the economy’s rebound from the pandemic, though they worry that rising prices could make people cut back on other spending.

“If gas prices rise so much that it affects consumers’ disposable incomes, this would weigh on discretionary spending,” said Fawad Razaqzada, a market analyst at ThinkMarkets. “It would be bad news for retailers.”

In California, where the average price of a gallon is the highest in the nation, at more than $4.60, drivers said they were changing their behavior. Some sought out cheaper spots, like Costco and Safeway gas stations, to save a few dollars.

At an Arco station in San Francisco’s NoPa neighborhood, a line of cars extended into the crowded street on Thursday. Some drivers searched for change. Others grumbled about the prices, which have shot up to as much as $4.49 at the Arco — known locally for its normally cheap rates — and up to $5.85 in the most expensive part of the city.

Keith Crawford, 57, who was filling up his Kia Optima, said he had taken to getting smaller amounts of gas twice a week to soften the blow to his bank account.

“You have to spread it out in order to stay afloat,” said Mr. Crawford, a concierge. “It’s part of the budget now.”

Thirty miles northeast of San Francisco in Vallejo, drivers lined up at the Safeway gas station off I-80, where the price was $4.83 per gallon. Several put the blame for their bills on the Biden administration.

“It’s Biden, Gavin Newsom — look at the gas taxes we pay,” said Kevin Altman, a 54-year-old retiree, referring to California’s governor.

Mr. Altman paid $50 to fill up his Jeep and estimated the gas would last him just two days. He said he had stopped driving to go fishing in nearby Benicia to avoid using too much gas, and would do all his Christmas shopping online this year.

The cost can be especially challenging for people who own businesses that depend on transit. Mahmut Sonmez, 33, who runs a car service, spends nearly $800 on gas out of the $2,500 he earns each week driving people around New Jersey. To save money, he moved in September into a Belleville apartment that is $400 cheaper than his previous home. He also cut his cable service and changed cellphone plans.

If gas prices keep rising, Mr. Sonmez said, he will consider changing jobs after nine years in the industry. “Somehow we’ve got to pay the rent,” he said.

In New Jersey, which bans self-service gas, some drivers are directing their ire toward station attendants.

“Every day they’re cursing me out,” said Gaby Marmol, 25, the assistant manager of a BP station in Newark, adding that when she sees how much the customers spend on both gas and convenience store items — $1.19 for ring pops that used to be 50 cents — she feels sympathetic. “We’re just doing our jobs, but they think we set the prices.”

Cheik Diakite, 62, an attendant at a Mobil station in Newark, doesn’t get as many tips as he did before the pandemic, he said, and grows frustrated listening to customers attribute the high prices to Mr. Biden.

Mr. Diakite typically passes afternoons by looking out for his most loyal customers. Bebi Amzad, who works at a nearby school, always has the same request for him: “Fill it up.” But when she pulled in on Thursday, she asked him to give her just $30 worth of gas.

“Today I’m not filling up all the way because I have other expenses,” said Ms. Amzad, 54, who commutes to Newark from Linden, N.J. “Everybody is hurting.”

Because she spends so much on gas and groceries, Ms. Amzad continued, she can’t afford many indulgences. “I don’t go to Marshalls anymore.”

Clifford Krauss contributed reporting.

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He Helped Build Tesla. Now He Hopes to Do the Same at Lucid.

But mass producing automobiles is a challenge of a different magnitude. Initial versions of the Air cost almost $35,000 more than a top-of-the-line Tesla Model S Plaid. To be profitable, Lucid must appeal to more than just a superwealthy elite.

“Lucid’s biggest risks are getting to scale and capacity,” said Daniel Ives, a senior analyst at Wedbush Securities who follows the electric car industry. “The first phase has been significantly successful. Now it’s about the next level of adoption.”

Lucid plans to offer a version of the Air next year that will cost $70,000 after a federal tax credit, and produce 500,000 cars a year by 2030, with a lineup that will include a sport utility vehicle and a pickup. The company had burned through $4.2 billion by June, and its prospectus noted that it might be years away from making money.

To avoid the problems that plagued Tesla in its early days, when for a while it was assembling cars in tents, Mr. Rawlinson is relying on people like Eric Bach, Lucid’s chief engineer. Mr. Bach, another Tesla refugee, has worked at Volkswagen and takes a very German approach to manufacturing. He can expound at length on the art of achieving narrow body gaps, the spaces between sheet metal that to engineers are a measure of quality.

“We’re not intending to put any tents up,” Mr. Bach said, except perhaps “to have a party.”

At the same time, the market is increasingly crowded. Automakers like Ford, General Motors and Volkswagen have invested heavily in electric vehicles.

Mr. Rawlinson has confounded naysayers before. He points out that some people doubted that the Model S would be a success, or said Lucid could not build a car with a range of 500 miles and get it out the factory door this year. “There is a track record here of me making claims which seem unrealistic but are absolutely based on science,” he said.

Success would have an extra bit of sweetness for Mr. Rawlinson, who left Tesla amid rancor with Elon Musk, the company’s mercurial chief executive.

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China’s Popular Electric Vehicles Have Put Europe’s Automakers on Notice

FRANKFURT — The name MG used to be synonymous with spirited but finicky sports cars from Britain. Nowadays the iconic octagonal badge serves a different kind of motoring ambition: China’s push to become a big player in the global auto market.

SAIC Motor, one of China’s Big Four automakers, bought the MG brand in 2007 and is stamping it on a line of electric sport utility vehicles on sale in Germany and other European markets. MG is an example of how Chinese carmakers are exploiting the shift to electric cars to challenge the American, European and Japanese carmakers that have long dominated the industry.

The Chinese automakers are arriving as electric cars surge in popularity, accounting for almost 10 percent of new car sales in Western Europe, and consumers are in a mood to buy, with savings built up during the pandemic. At the same time, car manufacturers are cutting back production because of shortages of microprocessors.

MG already has 350 dealers in 16 European countries and is still expanding. Two other Chinese automakers, Nio and BYD, are moving into Europe by way of Norway, the world’s most electrified large car market.

Nio, based in Shanghai, opened a dealership in Oslo at the end of September, the company’s first outlet outside China. BYD, based in Shenzhen, delivered an electric S.U.V. called the Tang, to the first Norwegian customer in August.

Polestar, which is based in Sweden but belongs to Geely Holding of China, has been selling a Chinese-made battery-powered model in Europe and the United States since 2020. And many of the Teslas on European roads were imported from the company’s factory in Shanghai. (That will change once the company finishes building a factory near Berlin.)

Foreign automakers like Volkswagen, Mercedes-Benz or General Motors sell millions of cars in China, so they can hardly complain when Chinese automakers encroach on their turf. Even though China is the world’s largest car market, its brands have only a sliver of the international market. Even buyers in China prefer foreign brands, although local carmakers are growing quickly and have captured more than 40 percent of the domestic market.

global semiconductor shortage. The wait time for an MG hybrid is only four weeks, and three months for an all-electric model, “which is pretty much OK compared to other brands right now,” Mr. Stark said.

Waits for many European brands can be much longer, especially for lower-priced models. Carmakers like Renault are allocating scarce chips to higher-end vehicles, which generate more profit.

While the market may be ripe for Chinese electric cars, the political timing may not be so ideal. Many European leaders share their American counterparts’ concern about Chinese trade practices, accusing Beijing of subsidizing companies to give them an unfair advantage in international competition.

are negotiating to form a government that is likely to include the Green Party, which favors a harder line against China than Angela Merkel, the departing chancellor. MG may be particularly vulnerable to concerns about the mingling of government and corporate interests because its parent company, SAIC, is majority owned by the state.

international car show in Munich in September. “Car brands, wherever they are located, have export business.”

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Old Power Gear Is Slowing Use of Clean Energy and Electric Cars

Seven months after workers finished installing solar panels atop the Garcia family home near Stanford University, the system is little more than a roof ornament. The problem: The local utility’s equipment is so overloaded that there is no place for the electricity produced by the panels to go.

“We wasted 30,000-something dollars on a system we can’t use,” Theresa Garcia said. “It’s just been really frustrating.”

President Biden is pushing lawmakers and regulators to wean the United States from fossil fuels and counter the effects of climate change. But his ambitious goals could be upended by aging transformers and dated electrical lines that have made it hard for homeowners, local governments and businesses to use solar panels, batteries, electric cars, heat pumps and other devices that can help reduce greenhouse gas emissions.

Much of the equipment on the electric grid was built decades ago and needs to be upgraded. It was designed for a world in which electricity flowed in one direction — from the grid to people. Now, homes and businesses are increasingly supplying energy to the grid from their rooftop solar panels.

to electricity generated by solar, wind, nuclear and other zero-emission energy sources. Yet the grid is far from having enough capacity to power all the things that can help address the effects of climate change, energy experts said.

“It’s a perfect violent storm as far as meeting the demand that we’re going to have,” said Michael Johnston, executive director of codes and standards for the National Electrical Contractors Association. “It’s no small problem.”

half of new cars sold in the country by 2030. If all of those cars were plugged in during the day when energy use is high, utilities would have to spend a lot on upgrades. But if regulators allowed more utilities to offer lower electricity rates at night, people would charge cars when there is plenty of spare capacity.

Some businesses are already finding ways to rely less on the grid when demand is high. Electrify America, a subsidiary of Volkswagen that operates an electric vehicle charging network, has installed large batteries at some charging stations to avoid paying fees that utilities impose on businesses that draw too much power.

Robert Barrosa, senior director of sales and marketing at Electrify America, said that eventually the company could help utilities by taking power when there was too much of it and supplying it when there was not enough of it.

$1,050 to $2,585 a year, according to Rewiring America. Those products are more energy efficient and electricity tends to cost less than comparable amounts of gasoline, heating oil and natural gas. Electric cars and appliances are also cheaper to maintain.

“Done right, money can go further toward a more reliable network,” Mr. Calisch said, “especially in the face of increased stress from climate change.”

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September Consumer Price Index: Inflation Rises

Consumer prices jumped more than expected last month, with rent, food and furniture costs surging as a limited supply of housing and a shortage of goods stemming from supply chain troubles combined to fuel rapid inflation.

The Consumer Price Index climbed 5.4 percent in September from a year earlier, faster than its 5.3 percent increase through August and above economists’ forecasts. Monthly price gains also exceeded predictions, with the index rising 0.4 percent from August to September.

The figures raise the stakes for both the Federal Reserve and the White House, which are facing a longer period of rapid inflation than they had expected and may soon come under pressure to act to ensure the price gains don’t become a permanent fixture.

On Wednesday, President Biden said his administration was doing what it could to fix supply-chain problems that have helped to produce shortages, long delivery times and rapid price increases for food, televisions, automobiles and other products.

Social Security Administration said on Wednesday that benefits would increase 5.9 percent in 2022, the biggest boost in 40 years. The increase, known as a cost-of-living adjustment, is tied to rising inflation.

jumped early in 2021 as prices for airfares, restaurant meals and apparel recovered after slumping as the economy locked down during the depths of the pandemic. That was expected. But more recently, prices have continued to climb as supply shortages mean businesses cannot keep up with fast-rising demand. Factory shutdowns, clogged shipping routes and labor shortages at ports and along trucking lines have combined to make goods difficult to produce and transport.

expect higher prices. If people believe that their lifestyles will cost more, they may demand higher compensation — and as employers lift pay, they may charge more for their goods to cover the costs, setting off an upward spiral.

though typically too little to fully offset the amount of inflation that has occurred this year. There are notable exceptions to that, including in leisure and hospitality jobs, where pay has accelerated faster than prices.

The fact that rents and other housing costs are now climbing only compounds the concern that price gains are becoming stickier.

“You have the sticky, important and cyclical piece of inflation surprising to the upside,” said Laura Rosner-Warburton, an economist at MacroPolicy Perspectives. “It is certainly a very significant development.”

Matt Permar, a 24-year-old mail carrier from Toledo, Ohio, rents a two-bedroom apartment in a suburban area with a friend from college. The pair had paid $540 a month each for two years, which Mr. Permar called “pretty standard.” But that has changed.

“With the housing market being the way it is, they raised it about $100,” he said of his monthly rent. As a result, Mr. Permar said, he will have less cash to save or invest.

The Fed aims for 2 percent inflation on average over time, which it defines using a different but related index, the Personal Consumption Expenditures measure. That gauge is released at more of a delay, and has also jumped this year.

Central bankers have said they are willing to look past surging prices because the gains are expected to prove transitory, and they expect long-run trends that had kept inflation low for years to come to dominate. But they have grown wary as rapid price gains last.

The Fed’s September meeting minutes showed that “most participants saw inflation risks as weighted to the upside because of concerns that supply disruptions and labor shortages might last longer and might have larger or more persistent effects on prices and wages than they currently assumed.”

Fed officials’ moves toward slowing their bond purchases could leave them more nimble if they find that they need to raise rates to control inflation next year. Officials have signaled that they want to stop buying bonds before raising rates, so that their two tools are not working at odds with each other.

Wall Street is watching every inflation data point closely, because higher rates from the Fed could squeeze growth and stock prices. And climbing costs can cut into corporate profits, denting earning prospects.

White House officials and many Wall Street data watchers tend to emphasize a “core” index of inflation, which strips out volatile food and fuel prices. Core inflation climbed 4 percent in the year through last month, but the monthly gain was less pronounced, at 0.2 percent.

Some economists welcomed that moderation as good news, along with the cooling in key prices, like airfares, that had popped earlier in the economic reopening. Others emphasized that once supply chain kinks were worked out, prices could drop on products like couches, bikes and refrigerators, providing a counterweight to rising housing expenses.

Omair Sharif, founder of Inflation Insights, said he expected consumer price inflation to moderate, coming in at 2.75 percent to 3 percent on a headline basis by next July, and for core inflation to cool down even more.

“I don’t think there’s any reason to panic,” he said.

Ana Swanson and Ben Casselman contributed reporting.

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