June 12, 2016

IT'S A DEFLATIONARY EPOCH:

U.S. Consumer Sentiment Fell Slightly in June (BEN LEUBSDORF,  June 10, 2016, WSJ)

Friday's report also showed that expectations for future inflation continued to slip in June. Expected inflation over the next year was 2.4%, unchanged from May. But expected inflation five years out was 2.3%, down from 2.5% the prior two months and hitting the lowest level in the survey's history.

U.S. inflation has undershot the Federal Reserve's 2% annual target for the past four years, though broad price gauges have firmed in recent months as the damping effects of falling oil prices and a rising dollar began to fade.

Fed officials, who will begin a two-day policy meeting on Tuesday, have signaled they want to see stable expectations to bolster their confidence that price growth will strengthen further in the coming months and years.

In a speech on Monday, Fed Chairwoman Janet Yellen noted that "some survey measures of longer-term inflation expectations have moved a little lower over the past couple of years," alongside a more marked decline in market-based measures.

"If inflation expectations really are moving lower, that could call into question whether inflation will move back to 2% as quickly as I expect," Ms. Yellen said.



MORE:
The Dollar Store Goes Digital (Fortune,   JUNE 12, 2016)'

While retail stores are shuttering, dollar stores are still growing. But they've done little to innovate over the years. That's where Hollar comes in. The startup has brought the dollar store online, and so far, they're seeing great success - a million visitors a month and $1 million in monthly sales in April.

It turns out, the thrill of shopping at a dollar store isn't just about physically picking through bins and store shelves looking for a gem-scrolling through endless items online is pretty fun too.

"The recession has accelerated [the dollar store] industry," David Yeom, Hollar's CEO told us. "Frugality is here to stay, but people want the simplicity of online ordering."

Posted by at June 12, 2016 8:15 AM

  

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