Posted on 05/30/2025 7:23:02 AM PDT by ChicagoConservative27
Prices barely climbed in April, pulling the annual rate of inflation down toward the Federal Reserve’s two percent target, even while personal income climbed at a rapid rate.
The personal consumption price index climbed 0.1 percent in April, the second month in a row in which consumers got relief from inflation that had plagued the economy throughout the Biden administration. In March, the index showed prices were flat.
Compared with a year ago, prices are up just 2.1 percent. That just one-tenth above the two percent rate of inflation the Fed says it targets. In March, prices were up 2.3 percent from a year earlier.
Core prices, a measure that excludes food and energy, also rose 0.1 percent. Over the past year, core prices are up 2.5 percent, the smallest year-over-year increase since March of 2021.
(Excerpt) Read more at breitbart.com ...
B-b-b-but Trump’s Tariffs!!!!!....................
MAGA!
OMG YOU POSTED SOMETHING POSITIVE ABOUT TRUMP!!!!
are you feeling OK???
I’m just teasing you FRiend! I know you are a stout supporter of the President.
Don’t allow the all-too-many Les Miserables who haunt Free Republic bring you down!
HAHA I need to go home (S)
BTTT
Surely the news was all over the front page of the NYT, WAPO, etc! It definitely must have been the lead story on the evening news all over the country!
But it wasn’t. Trump is pres.
I generally support our president. I generally do not see any huge price increases where I shop....normally Walmart. But there were a few(very few) that were suddenly heavily increased at one point awhile back. One went up 60% in one move as I recall. It was a low-priced item, but that’s a big percentage.
The Fed Funds rate has been the highest in decades and remained there for a long time. No wonder inflation is under control. When you cripple borrowing and kill liquidity with a high Fed Funds rate, you are going to reduce inflation.
The only problem was that the massive spending by Biden’s shadow gov was adding money to the system that was negating some of the impact of the high Fed funds rate. Now that the responsible adults are back in charge, the high Fed Funds rate is having the desired effect.
Rates can’t stay at 4.5% forever, in the face of a 3% inflation rate. The only question is if we will ever go back to 2% inflation while the national debt is closing in on $40 trillion. My guess is that 3% is the new 2%, and we will never see a return to 2% being normal. 3% inflation will be the new normal.
I still have no clue what the Fed Funds rate will be lowered to as a “normal” rate. It won’t be ZIRP. I don’t know if it will be 3%, 3.5%, or what.
Your anecdots is pretty meaningless as a measure of inflation.
Every once in a while, a product has a severe shortage for whatever reason, or else there is a run on the product due to extraordiary demand. There are a lot of normal reasons why any given product sold today could see a large temporary increase in price, or even a prolonged/permanent price increase.
That has nothing to do with inflation overall. Don’t confuse the price of a single item or even a small basket of items, with the overall inflation rate.
unexpected...
We don’t learn anything about inflation from this. The rise in the CPI is not inflation and is no predictor of long term trends. Inflation is and only is the increase in the supply of money. The CPI rises or falls as one effect of inflation but is a poor measure even of the price structure as the “market” basket is altered annually to take out those prices rising the highest and to equate people substituting poorer quality for expensive food with the price of food. Inflation is the government borrowing money and paying for it with printed dollars.
We don’t learn anything about inflation from this. The rise in the CPI is not inflation and is no predictor of long term trends. Inflation is and only is the increase in the supply of money. The CPI rises or falls as one effect of inflation but is a poor measure even of the price structure as the “market” basket is altered annually to take out those prices rising the highest and to equate people substituting poorer quality for expensive food with the price of food. Inflation is the government borrowing money and paying for it with printed thus cheaper dollars.
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