Monday, August 2

us inflation

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UK inflation jumped to a three-year high in June, driven by price increases in clothes and second-hand cars

Clothing prices rose in June after UK stores reopened. Mike Kemp/Getty Images Prices across the UK economy rose at the fastest rate in three years in June, official data released Wednesday showed, as Brits spent on clothes and meals out as the economy reopened.The UK consumer prices index rose 2.5% in the year to June 2021, from 2.1% in May. It was the highest reading since August 2018 and above economists' expectations for a 2.2% increase.Britain's Office for National Statistics said prices rose in particular for food, second-hand cars and clothing in the year to June, as well as for eating and drinking out and motor fuel."Some of the increase is from temporary effects, for example rising fuel prices which continue to increase inflation, but much of this is due to prices recover...
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The Instagram effect is pushing up the prices of’grammable activities like meals out and vacations-creating opportunities for investors

Consumers are rushing out to spend as economies reopen. Roy Rochlin/Getty Images Locked down during the pandemic, Americans and consumers around the world spent big on things like gadgets and gym equipment to make their time at home more bearable.But as economies reopen, people are splurging their cash on vacations, new clothes, and meals out.Paul Donovan, chief economist at UBS Wealth Management, calls it the Instagram effect.He says people want to show off again after months of lockdown, leading them to splurge on things they can post on the'gram. Donovan says the shift in spending patterns is pushing up inflation in some areas but helping bring it down in red-hot sectors like lumber. He expects the change to continue and argues it will be a good thing for markets and in...