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Inflation is forcing Americans to spend $709 more per month on everyday goods and services than they did just two years ago, according to the chief economist at Moody’s Analytics.

“The high inflation of the past 2+ years has done lots of economic damage,” Mark Zandi tweeted on Friday following the release of the Consumer Price Index — a closely-watched measure of inflation that tracks changes in the costs of everyday goods and services.

The CPI rose moderately, to 3.2% in July versus a year earlier.

“Due to the high inflation, the typical household spent $202 more in a July than they did a year ago to buy the same goods and services. And they spent $709 more than they did 2 years ago,” Zandi added.

Zandi — who also co-founded Moody’s global economic analysis service, Economy.com — said he sees relief ahead, predicting that inflation is “set to moderate further” as the Federal Reserve approaches its 2% inflation goal.

“Vehicle prices will decline more, so too will electricity prices, and the growth in the cost of housing will slow further. The biggest worry is the jump in oil prices, which bears close watching,” he added in the thread posted to X, formerly known as Twitter.

To be sure, the high inflation of the past 2+ years has done lots of economic damage. Due to the high inflation, the typical household spent $202 more in a July than they did a year ago to buy the same goods and services. And they spent $709 more than they did 2 years ago.

Though gas prices hit an eight-month high late last month, energy unexpectedly rose a mere 0.1%, the latest CPI report showed.

However, over the past month, US West Texas Intermediate and Brent crude futures climbed nearly 10%, to $82.83 and $86.39, respectively.

Zandi concluded his analysis with: “The deeper I dig into last weeks inflation statistics, the more confident I am that inflation will be back to the Feds inflation target by this time next year. And this without more interest rate hikes, a recession, or even much of an increase in unemployment.”

Fed officials have said that they’re also no longer forecasting a recession, though the sentiment opposes that of ratings agency Fitch, which owngraded the US top-tier sovereign credit from AAA to AA+, citing the possibility that the economy will slip into a mild recession later this year.

Consumers, however, have continued to feel reprieve from the central bank’s aggressive tightening regime, with core CPI which excludes volatile food and energy prices only rising 0.2% from a month ago, matching the 0.2% increase in June.

“The trend lines look good,” Zandi said, noting that “the July CPI report was great,” especially when compared to June 2022, when inflation peaked at 9.1% to hit a four-decade high.

Rising housing costs were by far the largest contributor to Julys uptick in prices, accounting for 90% of the advance, the Bureau of Labor Statistics reported, though Zandi didn’t seem too concerned.

When The Post reached out to Moody’s for comment, the financial services firm pointed to commentary from another economist at the company, Bernard Yaros, who said that “the US consumer price index was fully in line with our and consensus expectations in July.”

“Moodys Analytics believes that the Federal Reserve is done with interest-rate hikes for the current tightening cycle, and the July CPI helps cement our near-term view on monetary policy,” he added.

The CPI report fueled questions about whether the Fed will continue to hike interest rates later this year after the Fed decided on a 25-basis-point rate hike in July, taking them to a 22-year high.

Fed Chairman Jerome Powell announced that the advance was a unanimous decision, raising the benchmark federal-funds rate to a range between 5.25% and 5.5%. 

Economists were divided on the pending rate hikes following the release of the CPI report.

Greg Wilensky, head of US fixed income at Janus Henderson Investors, added: If economic conditions continue as expected, we believe we have seen the last hike for this cycle. This makes us more constructive on adding interest-rate risk, particularly at the front of curve.

Meanwhile, Raymond James Chief Economist Eugenio Aleman believes stubbornly-high shelter costs are slated to put pressure on headline inflation going forward.

No doubt the Fed will also look at the Labor Departments hiring report for July as it considers whether its done enough to snuff out inflation.

Last month, US employers added 187,000 jobs, the lowest number since COVID peaked in 2020, though unemployment remained little changed month-over-month, at 3.5%.

The labor market has showed surprising resiliency over the last couple of months, adding 209,000 jobs in June and a robust 339,000 jobs in May.

The US is currently enjoying a 30-month streak of monthly job gains.

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First ever electric rail car mover gets to work at Port of Baltimore [video]

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First ever electric rail car mover gets to work at Port of Baltimore [video]

The Helen Delich Bentley Port of Baltimore has announced a first for the contemporary American maritime industry: a battery-electric rail car mover that can organize the rail yard without dirtying up the air around it.

Built by the Marmon Rail’s Italian Zephir division, the LOK 16.150E model rail car mover features an 80-volt rechargeable battery pack sending current to a pair of 40 kW (about 50 hp) high-torque brushless motors. That may not sound like a lot in a world of 650 hp Kias and 1000 hp Teslas, but it’s enough to generate a drawbar pull (read: towing force) of more than 39,000 lbs. … all while generating zero tailpipe emissions.

“At this terminal, the asset will be used to help with intermodal cargo exchange,” said Matt Stahl, Mid-Atlantic terminal general manager for global shipping gurus Wallenius Wilhelmsen, who operate the Zephir. “We can do it with our own asset, without any assistance.”

Wallenius Wilhelmsen is using the Zephir to move rail cars loaded with heavy lift, farm and construction equipment, and military cargo within the Dundalk Marine Terminal, and claims it will remove over 180 tons of harmful carbon emissions per year.

You can check out the promotional video released by the Port of Baltimore to celebrate the Zephir’s deployment, below, then let us know what you think in the comments.

Electrek’s Take

Historically-conscious readers already know that the key word in that first paragraph is contemporary, because the Zephir is very much a case of “what’s old is new again,” according to Freightwaves’ Stuart Chirls. Chirls explains that the Zephir, “harks back [sic] to battery-powered railcar movers built by the Pennsylvania Railroad in 1912, rubber-tired ‘locomotives’ used to switch freight cars around the narrow streets of the Baltimore waterfront on track curvature too tight for standard motive power.”

If you want to learn more about the Pennsylvania Railroads’ 100-year lead on electric rail car switcher technology, check out this article on Railfan, which includes the photos below plus a whole lot more.

Don’t miss: they had license plates!

Rubber Tired Switchers

SOURCES | IMAGES: Port of Baltimore, via Freightwaves, Railfan.

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Awesomely Weird Alibaba EV of the Week: This four-wheeled e-bike/car

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Awesomely Weird Alibaba EV of the Week: This four-wheeled e-bike/car

When it comes to oddities of the electric vehicle variety, it doesn’t take much to pique my interest. If it’s got an electric motor and a funky shape, I’m down to clown. But being an electric bicycle guy through and through, anytime we can work some good ol’ pedaling action into the mix, I’m all the happier. And this week’s edition of the Awesomely Weird Alibaba Electric Vehicle of the Week sure tickles my fancy!

If Teslas are too mainstream for you, but Fred Flinstone’s car is a bit too much effort, then I think I’ve found the perfect compromise. This electric bike-car offers everything its name promises.

It’s got pedals like a bike, along with a set of handlebars for steering and a bicycle seat for keeping you the perfect amount of uncomfortable. But it’s also got the enclosed convenience of a car, shielding riders from the rain and sun, though not from the curious looks of passersby. And with an electric bicycle motor, you don’t have to burn through your entire lunch just pedaling this brick down the block.

Of course, beauty is always in the eye of the beholder. And I’m sure the appearance will be divisive, with some finding it charming and others… less so. But more than just looks, this thing is about utility.

I’d say the design is perfect for anyone who has ever said, “Give me the environmental friendliness of an electric bicycle but with the turning radius of a school bus.” Finally, a vehicle that lets you feel superior to cyclists and drivers simultaneously while enjoying the camaraderie of neither.

Combining the aerodynamics of a garden shed and the aesthetics of a cute dumpster, this electric bike car is likely as hard to get rolling as it is to park. But it’s got one main thing going for it: an insane amount of enclosed storage space that other e-bikes could only dream of.

Behind those double doors is your own mobile storage unit, and one that has every right to use the bicycle lane – at least in cities that extend such rights to four-wheeled bicycles.

To put numbers on it, this thing offers a massive 1.8 cubic meters of storage space in back. I’m not sure the best way to describe that in freedom units. Does 63 cubic feet mean anything to anyone? 475 gallons? A micro-studio apartment in NYC?

Either way, you could just about turn the rear box into a tiny camper – though it wouldn’t be the first bicycle-based RV we’ve seen.

As far as performance goes, it’s got a top speed of 31 km/h, or a hair under 20 mph. Considering it probably has the crash-test rating of a cardboard box, I’m not sure I’d want to go that fast too often.

The benefit of crashing on a standard bicycle is you get to separate from it fairly quickly. Crashing in this thing makes me feel like I’d just pinball around inside the cab until I’ve become one with the handlebars.

Of course, the ideal environment for something like this electric bike-car is not mixing it up with traffic. I’d much rather stick to the bike lane or bicycle highways – though I’m not sure how my fellow cyclists would welcome me there. Actually, I’m not sure they’d even consider me a fellow cyclist.

So alas, I’m not sure exactly where I’d use it. And at $3,000, that’s a hefty chunk of change for a vehicle that would have a hard time fitting into our world. But even though its place is hard to understand, I’ll forever love that things like this exist.

Just please don’t go and try to buy something like this from Alibaba. Yes, I know I’m not a good example and rarely take my own advice. But this is a, “do what I say, not what I do” situation, indeed.

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Bitcoin hinges on $93K support, risks $1.3B liquidation on trade war concerns

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Bitcoin hinges on K support, risks .3B liquidation on trade war concerns

Global trade war concerns may pressure Bitcoin below the key $93,000 support in the short term, analysts told Cointelegraph.

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