Posted on 08/10/2022 6:37:11 AM PDT by Erik Latranyi
U.S. inflation was 8.5% in July, the Labor Department said Wednesday, holding close to its highest annual rate in four decades despite easing energy costs.
Rapidly rising prices have become persistent following a surge in inflation from goods, energy and food, said Greg Daco, chief economist for EY-Parthenon, a consulting firm.
“That divergent trend shows there’s a breadth of inflation in that housing inflation and service-sector inflation remain elevated,” he said, adding price pressures in those areas could linger. “And those tend to be stickier than goods, which can and will start to reverse.”
Elevated inflation is the byproduct of rapid growth as the U.S. rebounded from the Covid-19 pandemic, fueled in part by lower interest rates and government stimulus. The Federal Reserve faces the challenge of tightening monetary policy to cool the hot labor market and slow demand enough to curb inflation, but not enough to set off a recession.
(Excerpt) Read more at msn.com ...
Can’t wait to see the spin they put on these ugly numbers...
Well, Yee-Haaa!
They’ll say “costs are dropping” as it was 9.1% last month! Happy days are here again..all is good.
Recession? We don’t see no steenkin’ recession.
Such relief! Not
Lol…they are already spinning.
“ easing energy costs” means gasoline is $4 a gallon instead of $5.
As Joe sells off the strategic reserve.
“Low interest rates” meant my ARM mortgage just adjusted up to an extra $350 a month
They’ll say “costs are dropping” as it was 9.1% last month! Happy days are here again..all is good.
So true, just like gas prices. Still way higher than before Joey took office, but have dropped a few cents
Elevated inflation is the byproduct of rapid PRINTING......................
“It appeared that there had even been demonstrations to thank Big Brother for raising the chocolate ration to twenty grams a week. And only yesterday […] it had been announced that the ration was to be reduced to twenty grams a week. Was it possible that they could swallow that, after only twenty-four hours? Yes, they swallowed it. [...] The eyeless crature at the other table swallowed it fanatically. passionately, with a furious desire to track down, denounce, and vaporize anyone who should suggest that last week the ration had been thirty grams. Syme, too-in some more double complex way, involving doublethink-Syme, swallow it. Was he, then, alone in the possession of a memory?”
― Orwell George, 1984
Don’t worry folks, if you can’t afford to heat your house this winter, you can always burn the furniture.
So in MSM speak, a decrease in the rate of increase in inflation is a “drop in inflation”.
B-but they passed the Inflation Reduction Act! How can this be?!/s
But the rate remained the same when compared to June.
And stocks are now rocketing upward at this awesome news of “only” 8.5% inflation. Lowered expectations indeed.
The USA decline in gasoline prices clearly reflects a major drop in demand.
We consumed 9.5 million barrels a day in July 2021.
We consumed 8.5 million barrels a day in July 2022.
That is a decline of 10.5%.
On August 8 I was in Aldi’s and noticed their 24-oz can of Colombian coffee was up about $3.00 over what is was just a month previous.
It is going to take a long while to wash high inflation out of the economy.
More fuel for the fire.
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