Inflation ticks down to 8.5%, bolstering hopes it might be cresting

[mystery-ak]

Inflation ticks down to 8.5%, bolstering hopes it might be cresting
by Zachary Halaschak, Economics Reporter |
 | August 10, 2022 08:30 AM

Inflation slowed to 8.5% for the 12 months ending in July, according to the consumer price index, a welcome sign that price pressures might be peaking.

The much-anticipated numbers reported by the Bureau of Labor Statistics on Wednesday revealed that while it ticked down, inflation is still going strong despite the Federal Reserve's interest rate hikes and is near the worst it has been since the Great Inflation that helped bring President Ronald Reagan to office. June’s headline CPI reading clocked in at 9.1%.

The soaring inflation has eaten into President Joe Biden’s approval ratings as he and Democrats approach the midterm elections. Consumer prices have been rising fast since last August, especially for staples such as food and gas. In fact, until March’s CPI report, inflation had risen every month for eight months.

Wednesday’s CPI report comes as the central bank works to hike interest rates aggressively in order to dampen consumer demand and thus lower prices.

In July, following a two-day meeting, central bank officials announced that the Fed would increase its interest rate target by three-quarters of a percentage point. The central bank usually hikes rates by just a quarter of a percentage point, so the move was analogous to three concurrent rate hikes, which shows just how eager the Fed is to tame inflation.

Last month’s rate hike came after the Fed hiked rates by the same massive margin in June and conducted two other rate increases in March and May.

more
https://www.washingtonexaminer.com/policy/economy/inflation-ticks-down-to-8-5-bolstering-hopes-it-might-be-cresting

[mystery-ak]

Published 21 mins ago
Inflation climbed 8.5% in July as prices cool but remain near record high
Price gains eased in July for the first time in months

By Megan Henney FOXBusiness

The torrid pace of inflation slowed in July for the first time in months, but prices remained near the highest level in 40 years.

The Labor Department said Wednesday that the consumer price index, a broad measure of the price for everyday goods including gasoline, groceries and rents, rose 8.5% in July from a year ago, below the 9.1% year-over-year surge recorded in June. Prices were unchanged in the one-month period from June.

Those figures were both lower than the 8.7% headline figure and 0.2% monthly gain forecast by Refinitiv economists, a welcoming sign for the Federal Reserve as it seeks to cool price gains and tame consumer demand. Stock futures rose on the better-than-expected report, with the Dow Jones Industrial Average climbing 0.9% and S&P 500 futures gaining 1.2%.

https://www.foxbusiness.com/economy/inflation-climbed-july-prices-cool-remain-near-record-high

[DefiantMassRINO]

Could also be a mirage created by easier year-over-year monthly comparisons.

Stuff is still much more expensive, if it's available, compared with 2019.

[Polly Ticks]

With any luck, I'll be able to buy both groceries and gas!

At least until the Inflation Inflation Act kicks in.

[catfish1957]

Could also be a mirage created by easier year-over-year monthly comparisons.

Stuff is still much more expensive, if it's available, compared with 2019.

From my vantage point, I still see inflation accelerating. I do meticulous budgetary estimates and analyses.  The climb has not stopped.  The illusion I think you may be citing, is that the increases are being slightly tamped down by a 10% recent reduction (est.) in gas prices.

Being retired, and somewhat of a homebody, I really don't do a lot of day to day driving, so my gasoline bill is typically under a $100 a month anyway.  But OTOH, I do go to the grocery store a couple of times a week, and the differences are stark.

[Hoodat]

Down to 8.5%?   Seriously?  How about 0% inflation?  That's what I'm waiting for.

The UK experienced 0% inflation between 1790 and 1936?  Do you know why?  Because they didn't increase their money supply.  Inflation is the product of government monetary policy.  Period.

[Hoodat]

Liar Biden

https://twitter.com/TPostMillennial/status/1557370756446683136

[catfish1957]

Down to 8.5%?   Seriously?  How about 0% inflation?  That's what I'm waiting for.

The UK experienced 0% inflation between 1790 and 1936?  Do you know why?  Because they didn't increase their money supply.  Inflation is the product of government monetary policy.  Period.

Great point.  Economic dipshits who finally decoupled our currency from any form or tie to  precious metals (1965 and after) additonally did the same here.  Your greenbacks are based 100% on your faith in the United States to back transactions with that currency. 

Anyone watching what's going on in D.C. should really re-examine that faith in earnest.

[catfish1957]

Liar Biden

https://twitter.com/TPostMillennial/status/1557370756446683136

And probably 25% of the idiots in this country beleives him.

[Bigun]

Joe Biden has no idea what day it is most of the time!

[mystery-ak]

When you are in power you can manipulate economic/unemployment numbers...especially during an election year and that is what is happening now....are people going to believe what Biden's WH says or their lying eyes at the grocery store..

[DefiantMassRINO]

Prices at the grocery store and at the gas station don't lie.  Neither do my bills.

[Wingnut]

Joe Biden has no idea what day it is most of the time!

He can't even win a fight against his suit coat.

[Polly Ticks]

Prices at the grocery store and at the gas station don't lie.  Neither do my bills.

Yep. People vote their pocketbooks ... and their retirement accounts, too.

[catfish1957]

When you are in power you can manipulate economic/unemployment numbers...especially during an election year and that is what is happening now....are people going to believe what Biden's WH says or their lying eyes at the grocery store..

Myst, you are 100% right.  Everyone with any knowledge of economic matters knows that from CPI numbers, employment numbers, etc. that Biden and his cronies are lying out their asses.  We are seeing actual inflation that dwarfs the Carter era.

The 2000 pound elephant in the room, is that back in 1977-1979 the United States had a much more robust industrial economy that allowed us to dig out, with RWR's help.  That base is long gone.  And in fact we are trying to stab what industrial entities in the back that he have left with excessive progressive taxation, and 100X the regulatory burden that 1979 saw.

Self inflicted suicide, and we all will suffer.

[cato potatoe]

The best economists do not end up at the BLS, just as the smartest beancounters avoid the IRS.  Garbage in, garbage out.

[catfish1957]

The best economists do not end up at the BLS, just as the smartest beancounters avoid the IRS.  Garbage in, garbage out.

Really interesting how many they are going to find taking an entry GS-5 job (starting agent level) at $35K./yr,

[Hoodat]

Really interesting how many they are going to find taking an entry GS-5 job (starting agent level) at $35K./yr,

The ones who are more interested in wielding power than making money.

[Kamaji]

The best economists do not end up at the BLS, just as the smartest beancounters avoid the IRS.  Garbage in, garbage out.

There are some good bean-counters at the IRS; there are some idiots, too, of course, but not all are dummies.

[Kamaji]

Really interesting how many they are going to find taking an entry GS-5 job (starting agent level) at $35K./yr,

One has to factor in the platinum-plated benefits, too, both during employment and as retirement afterward.

[catfish1957]

There are some good bean-counters at the IRS; there are some idiots, too, of course, but not all are dummies.

That is true.  My experience has been about 60/40.  The majority are just folks wanting to do their job with the least amount of hassle possible.  Then there is that 40% that couldn't find their ass from a hole in the ground.

[libertybele]

With any luck, I'll be able to buy both groceries and gas!

At least until the Inflation Inflation Act kicks in.

The Inflation Reduction Act is going to do more harm than good. 

[mystery-ak]

The Inflation Reduction Act is going to do more harm than good.

It should be called *The Income Reduction Act*

[libertybele]

When you are in power you can manipulate economic/unemployment numbers...especially during an election year and that is what is happening now....are people going to believe what Biden's WH says or their lying eyes at the grocery store..

You are exactly right.  The WH can spin the numbers however they want, but people know the negative impact that Joe has had on their wallets -- mine keeps shrinking along with everybody elses.  Food, gas, electricity, water, insurance, etc., have skyrocketed and not just by a little bit, but by a significant amount.

[libertybele]

It should be called *The Income Reduction Act*