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inflation moderates slightly

Inflation Moderates Slightly in March 2022 After Increasing for 8 Months

The consumer price index (CPI) fell from 8.5% in March to 8.3% in April, according to the report from the U.S. Bureau of Labor Statistics, failing to meet the expectations of Wall Street for consumer prices and inflation. Economists had previously forecasted a drop to 8.1% for the same time period, owing to raises in rates from the Federal Reserve. However, it still was the first drop in eight months. While experts believe that inflation may finally have peaked, others feel that the Federal Reserve will need to be more aggressive regarding the interest rates for things to return to normal levels.

This is reflected in the way that prices went up. The consumer price index went up 0.6% for most items between March and April, with the exception of groceries and gas. Wall Street expected a rise of only 0.4%, given that the increase was 0.3% in March. The fact that the increase doubled is a sign that inflation is still a factor.

This increase in prices caused the stocks to end lower once more. The Dow Jones Industrial Average finished 1% lower, or over 300 points,the same day the report was released. The S&P 500 meanwhile fell 1.6%, and Nasdaq Composite fell by 3.2%.Some of the heaviest hits were felt in the Tech industry, with companies such as Netflix, Amazon, Apple, and Tesla falling by 3% or more due to the continued offload of shares by investors.

This data has worsened the state of the crypto market, as well as further eroded the confidence of its investors. Bitcoin’s price fell another 7% to reach around $29,000, its lowest point since the late 2020-early 2021 surge in price. Though it has since stabilized at around $30,000.

While food, shelter, and vehicle prices surged, gas prices fell around 6%, which helped counteract the overall increase and slow the rate of inflation. Experts believe that the peak of inflation has most likely been reached, but that the prices will continue to be above the Fed’s expectations during 2023. The chief economist of Comerica Bank, Bill Adams, stated that the slower inflation seen in April was most likely an effect of March’s gas price surge, itself owed to the Russia-Ukraine war.

This slow down of inflation, after a 40-year high, paints a slightly better picture after months of price increases. Still, April was the second-highest inflation level in four decades. The Federal Reserve set a 2% rate of inflation as its target, but experts expect that to rise to 5% or 6%, one of its highest points in history.

Chris Zaccarelli, chief investment officer of Independent Advisor Alliance, stated that the Fed would need to raise rates more quickly and to higher levels in order for things to stabilize. He predicted at least four 50 bps rate hikes during 2023. On May 10th, one day before the report was revealed, United States President Joe Biden referred to inflation as his top domestic priority and the mainproblem that families are currently facing. This increased escalation in inflation is owed, in part, due to disruptions in supply chains caused by the worldwide COVID-19 pandemic.

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More Gas Station Merchants Are Now Accepting Fleet Cards

One of the most common credit cards you can accept at a gas station is a fleet card. Gas station merchant services often accept fleet cards that people use to pay for fuel at gas stations. These include people who work for certain businesses that provide vehicles for those workers to use.

Gas companies and other organizations can offer fleet cards to their employees. They can establish plans with businesses to produce multiple cards for each employee or vehicle.

You will likely accept plenty of fleet cards when running a gas station. Your gas station merchant services reports can include details on various fleet cards you accept. The benefits these cards provide to businesses make them common ones you’ll find today.

The General Concept

A fleet card is a credit card issued to businesses that have people who regularly drive certain vehicles. The card can work for businesses that utilize vehicles for deliveries and other activities. A company can request as many fleet cards as necessary, but it will use the same account to manage all these cards it uses.

A business could have hundreds or even thousands of vehicles in its fleet. A fleet card system allows the workers who control these vehicles to maintain them.

What Do People Buy With Fleet Cards?

The workers can use their fleet cards for many purchases, with many of these focusing on how they will manage their vehicles. These include:

  • Fuel for their vehicles
  • DEF for diesel vehicles
  • Oil, antifreeze, coolant, and other items necessary for vehicle maintenance

Full Control

Gas station merchant services often see fleet card transactions because employers will have control over how their employees use these cards. An employer can do many things with these fleet cards, including:

  • Establish limits on how employees can spend with these cards; these restrictions can include limits on what products or services someone can buy
  • Identify potential misuse issues, including when someone doesn’t use a fleet card at a designated location or for vehicle-related needs
  • Check reports on how people are spending money with their cards
  • Create budgeting estimates for how workers will use their vehicles

These efforts allow a business to keep tabs on how its employees spend money. It keeps expenses down, as people will only spend money on the vehicles they operate.

Possible Rewards

Fleet cards are also noteworthy for how businesses can potentially enjoy unique rewards. Some of these rewards include:

  • Cashback offers
  • Discounts on fuel purchases
  • Added insurance protection for vehicles in one’s fleet
  • Discounted interest rates and reduced fees versus what traditional cards provide

The rewards will vary surrounding whoever provides the card. But the deals that are available will be worthwhile, as they ensure a business will have more control over how it handles its funds while maintaining its vehicles.

You will likely find many fleet cards when managing your gas station merchant services needs. The benefits of these cards and the ways how business owners can manage them make these cards popular for many uses.