To reach peak inflation, how much longer do we have to go?

To reach peak inflation, how much longer do we have to go?

Transcript¹

The latest inflation measurement for January is expected to show another sharp increase in consumer prices.

RACHEL MARTIN, HOST:

We got our first inflation report of the new year this morning, and - sorry to report - it is not pretty. Consumer prices in January were up 7.5% from a year ago. That's a sharper increase than the month before and even higher inflation than forecasters were predicting. The Federal Reserve is expected to start hiking interest rates as early as next month, all in an effort to rein² in rising prices. NPR's chief economics correspondent Scott Horsley is with us now. Hey, Scott.

SCOTT HORSLEY, BYLINE³: Good morning, Rachel.

MARTIN: Scott, why is inflation still so high?

HORSLEY: Well, food prices were higher last month, Rachel. Rent was up. Gasoline was actually a little less expensive in January. But electricity prices jumped sharply. So we've now had two months in a row with annual inflation above 7%. That's the highest since early 1982. And this means anybody who's under 40 is witnessing the highest inflation in his or her lifetime. One thing we're seeing is that a lot of big companies that used to be reluctant to raise prices for fear that they would lose customers are now finding they can charge more and not lose business. Just this week, the burrito chain Chipotle said it met no resistance to a 4% price hike in December. The company's sales and profits both outpaced analyst⁴ expectations.

MARTIN: So the Labor⁵ Department also made some changes today in exactly how it measures inflation, right? What can you tell us about that?

HORSLEY: Yeah, every couple of years, the Labor Department adjusts the basket of goods and services that go into the consumer price index by looking at people's actual spending patterns and trying to mirror those. This year, that routine adjustment includes people spending in 2020, when the pandemic first hit, and obviously, those early months of the pandemic changed what people spend money on. So the new basket includes more groceries but fewer restaurant meals, more household goods but fewer work clothes. In January, that adjustment to the basket probably pushed the inflation reading up just a little bit. The net effect over the longer term is harder to know, but it's something to keep an eye on.

MARTIN: Inflation has been a problem for President Biden, if we talk about the politics of all this. It's been a drag on his approval rating. How is the White House talking about this, messaging around this?

HORSLEY: Yeah, the White House acknowledges the toll⁶ that inflation is taking on family budgets, and it's trying to highlight the steps that the administration's taken to untangle supply chains and increase competition. Ultimately, though, fighting inflation is the Federal Reserve's job, and White House spokeswoman Jen Psaki is looking to the central bank to start making its move with interest rates pretty soon.

(SOUNDBITE OF ARCHIVED RECORDING)

JEN PSAKI: The Federal Reserve has purview⁷ over the independent approaches that they so choose to. And we certainly - as the president has said, he welcomes and supports their efforts to take steps.

HORSLEY: The Fed has telegraphed pretty clearly that it plans to start raising rates as early as next month, and forecasters think the central bank could move pretty aggressively. Of course, rates have been close to zero throughout the pandemic.

MARTIN: Yeah, so speaking of the Fed, there could soon be some new faces around the very table where interest rates are set. Who are they?

HORSLEY: That's right. President Biden has nominated three new members to serve on the Fed's governing board along with Jerome Powell, who's been renominated, and Lael Brainard, who's been promoted. The Senate Banking⁸ Committee is expected to vote on those nominations⁹ next week, and then it'd be up to the full Senate to confirm. In addition, the Boston Federal Reserve Bank just announced Susan Collins is joining the bank as president. She's an economist¹⁰. And she'll be the first African American woman to head one of the 12 regional Federal Reserve banks.

MARTIN: Senior economics correspondent Scott Horsley. We appreciate you, Scott. Thanks.

HORSLEY: Good to be with you.

1 transcript   

n.抄本，誊本，副本，肄业证书

参考例句：

• A transcript of the tapes was presented as evidence in court.一份录音带的文字本作为证据被呈交法庭。
• They wouldn't let me have a transcript of the interview.他们拒绝给我一份采访的文字整理稿。

2 rein   

n.疆绳，统治，支配；vt.以僵绳控制，统治

参考例句：

• The horse answered to the slightest pull on the rein.只要缰绳轻轻一拉,马就作出反应。
• He never drew rein for a moment till he reached the river.他一刻不停地一直跑到河边。

3 byline   

n.署名；v.署名

参考例句：

• His byline was absent as well.他的署名也不见了。
• We wish to thank the author of this article which carries no byline.我们要感谢这篇文章的那位没有署名的作者。

4 analyst   

n.分析家，化验员；心理分析学家

参考例句：

• What can you contribute to the position of a market analyst?你有什么技能可有助于市场分析员的职务？
• The analyst is required to interpolate values between standards.分析人员需要在这些标准中插入一些值。

5 labor   

n.劳动，努力，工作，劳工；分娩；vi.劳动，努力，苦干；vt.详细分析；麻烦

参考例句：

• We are never late in satisfying him for his labor.我们从不延误付给他劳动报酬。
• He was completely spent after two weeks of hard labor.艰苦劳动两周后，他已经疲惫不堪了。

6 toll   

n.过路(桥)费；损失，伤亡人数；v.敲(钟)

参考例句：

• The hailstone took a heavy toll of the crops in our village last night.昨晚那场冰雹损坏了我们村的庄稼。
• The war took a heavy toll of human life.这次战争夺去了许多人的生命。

7 purview   

n.范围；眼界

参考例句：

• These are questions that lie outside the purview of our inquiry.这些都不是属于我们调查范围的问题。
• That,however,was beyond the purview of the court;it was a diplomatic matter.但是，那已不在法庭权限之内；那是个外交问题。

8 banking   

n.银行业，银行学，金融业

参考例句：

• John is launching his son on a career in banking.约翰打算让儿子在银行界谋一个新职位。
• He possesses an extensive knowledge of banking.他具有广博的银行业务知识。

9 nominations   

n.提名，任命( nomination的名词复数 )

参考例句：

• Nominations are invited for the post of party chairman. 为党主席职位征集候选人。 来自《简明英汉词典》
• Much coverage surrounded his abortive bids for the 1960,1964, and 1968 Republican Presidential nominations. 许多消息报道都围绕着1960年、1964年和1968年他为争取提名为共和党总统候选人所做努力的失败。 来自辞典例句

10 economist   

n.经济学家，经济专家，节俭的人

参考例句：

• He cast a professional economist's eyes on the problem.他以经济学行家的眼光审视这个问题。
• He's an economist who thinks he knows all the answers.他是个经济学家，自以为什么都懂。