‘Remarkable’ surge in auto insurance costs fans US inflation | Reuters
Inflation
Change in Price Since March 2020
NPR
Inflation ticked up a little in December on the back of higher costs for housing and car insurance.
The overall cost of living in December was up 3.4% from a year ago, a slightly larger increase than the 3.1% rate in November, according to data from the Labor Department on Thursday.
The cost of motor vehicle insurance rose 1.5% in December from the previous month, marking a 20.3% increase compared to the previous year.
The cost of housing accounted for more than half the monthly increase in consumer prices. Food and energy prices were also up in December. The so-called "core" inflation rate, which excludes food and energy prices, was 3.9% last month.
Interest Rates on Hold and Powell Speaks About Decision – The New York Times
The Federal Reserve left interest rates unchanged on Wednesday while leaving the door open to a future increase, a cautious stance at a time when rapid inflation is retreating but is not yet vanquished.
Rates have been on hold in a range of 5.25 to 5.5 percent since July, up from near-zero as recently as March 2022. Policymakers think that borrowing costs are now high enough to weigh on economic growth if they are kept at this level over time.
By cooling demand, the Fed is hoping to prod companies to raise prices less quickly. While the economy has held up so far — growth was unusually strong this summer — inflation has come down since 2022. Overall price increases decelerated to 3.4 percent as of September, down from above 7 percent at their peak.
How Far Does $1 From 1999 Go Today?
Some request inflation adjustment from wind power developers
Many of the wind projects were bid several years ago before the COVID-19 pandemic, Reynold explained. Since then, the costs of cement, steel and wind turbines have all increased.
How much additional funding each project has requested from the PSC depends on when the projects were originally bid.
“Ranging from 27% for some, all the way up to 70% for some other projects,” Reynolds said.
For land-based wind projects, the state estimates that the increases would translate into an additional cost to consumers of $1.57 per month.
Reynolds didn’t comment on the additional cost to consumers of offshore wind projects.
The PSC may rule on the inflation adjustment as early as Oct. 12. If the adjustments are approved, the additional funding will be triggered when the project reaches the construction stage.
“So, if the prices go back down, the inflation adjustment would be less,” Reynolds said.
If the PSC denies the inflation adjustment, Reynolds said the situation would be “bad."
“Both offshore wind projects, and the land-based wind and solar projects, have demonstrated that the prices have gone up for these projects. And so, they can’t get built at these prices,” she said.
The petitions cover about 90 renewable energy projects.
“A lot of them will get canceled,” Reynolds warned. “Some of them may successfully rebid.”