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Automobile factories are curtailing production but the drop in consumerdemand is influencing those actions as much as part shortages. It may now take longer for a truck loaded with agricultural goods to pass from Italy to Austria, but those goods are still arriving at their destinations.
However, the FOMC evaluates the 2% goal against the Personal Consumption Expenditures Price Index (“PCE”) (addressed below). Further, higher labor costs also support higher consumerdemand. Consequently, higher labor costs can also create inflationary pressure at the consumer level. percent before seasonal adjustment.” [2]
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