Influencers on social media have increased demand for many foods and drinks, including matcha. Tencha leaves, which are used to make matcha, nearly tripled in price between 2024 and 2025. The bushes that produce tencha leaves take years to grow.—economist.com
Category: Economics in the News-Macro
U.S. Adds a Whopping 162,000 Jobs in a Bright Spot for the Economy
The U.S. labor market report for August 2026 showed a strong labor market with the unemployment rate falling to a historically low 4.1 percent.—wsj.com U.S. at Above-Target Inflation The U.S. annual inflation rate was 3.7 percent in July 2026. In fact, inflation has remained above the Federal Reserve’s 2 percent target for five and a … Continue reading U.S. Adds a Whopping 162,000 Jobs in a Bright Spot for the Economy
Identifying the Type of Unemployment
Jasmine Walker recently graduated and is applying for marketing jobs but hasn’t found one yet.—bbc.com Aaron Diangienda has spent more than a year searching for a suitable job and plans to return to college to complete his sports diploma.—bbc.com Dean Grey, an entry-level software engineer, struggled to find work as the tech market shifted toward … Continue reading Identifying the Type of Unemployment
30-Year Treasury Yield Hits Highest Level Since 2007
The 30-year Treasury yield reached 5.333%, its highest level since 2007, driven by concerns about high inflation, large fiscal deficits being met through borrowing, and increased corporate borrowing to finance AI investment.—wsj.com
Japan Updates its CPI Basket
Japan has updated its Consumer Price Index (CPI) basket. As office dress codes have become more casual, formal office wear items, such as ties, are out. They are replaced with modern lifestyle items like protein powder.—ft.com
Higher-Than-Expected Inflation Lowers the Real Interest Rate
After cutting interest rates last year, the Fed expected inflation to remain just above its 2% target. Instead, inflation stayed between 3% and 4%, making the Fed’s 3.5%–3.75% policy rate close to zero or negative in real terms. It is the real interest rate that matters for spending decisions.—wsj.com
The American Shopper in Japan
New Yorker Jen Caramichael bought a new Seiko watch in Tokyo for 120,000 yen. At the market exchange rate, that is about $740, compared with the approximately $1,000 she would expect to pay in New York. —wsj.com
Why Doesn’t Arbitrage Eliminate the Price Difference?
While visiting Tokyo, Jen Caramichael noticed that a Seiko watch sells for about $740 there but around $1,000 in New York.—wsj.com
The Reserve Bank of New Zealand (RBNZ) Raises its Policy Rate
The RBNZ raised its Official Cash Rate (the rate commercial banks earn on deposits with, or pay on borrowing from, the central bank) from 2.0% to 2.5%. Although the rate still encourages borrowing, the neutral rate is uncertain. Further rate increases may be needed to bring inflation back to target.—wsj.com
Britain’s Laffer Curve for Capital Gains Tax On Top Earners
Many wealthy Britons have emigrated as capital gains taxes have increased. Despite this, a senior politician has proposed raising the highest capital gains tax rate from 24% to 45%.—wsj.com In October 2024, capital gains tax rates were increased for all categories of taxpayers. The capital gains tax rate for top earners rose from 20% to … Continue reading Britain’s Laffer Curve for Capital Gains Tax On Top Earners