The Fed’s favorite inflation indicator increased 0.2% in July, as expected

CNBC ^ | 8/30/2024 | Jeff Cox

[frogjerk]

Inflation edged higher in July, according to a measure favored by the Federal Reserve as the central bank prepares to enact its first interest rate reduction in more than four years.

The Commerce Department reported Friday that the personal consumption expenditures price index rose 0.2% on the month and was up 2.5% from the same period a year ago, exactly in line with the Dow Jones consensus estimates.

Excluding volatile food and energy prices, core PCE also increased 0.2% for the month but was up 2.6% from a year ago. The 12-month figure was slightly softer than the 2.7% estimate.

Fed officials tend to focus more on the core reading as a better gauge of long-run trends. Both core and headline inflation on a 12-month basis were the same as in June.

Core prices less housing increased just 0.1% on the month. As other inflation components ease, shelter has proven to be stubborn, again rising 0.4% in July, according to Friday’s report.

[frogjerk]

Yep

[C210N]

Ah, the initial “pre-election” report.

Looking forward to the post-election revision...

[Leaning Right]

So prices are up less than 3% from this time a year ago. It seems more than that to me. I guess I’m wrong. The Commerce Department folks are way smarter than I am.

But then I remember what another smart guy said:

[ridesthemiles]

A MONTH on Y to Y basis.

[Leaning Right]

As the headline said, the Commerce Department reported a 0.2% for just the month of July (monthly, as you noted).

But deeper in the article they also reported what seems to be a one-year figure, 2.6%. That’s the one I was referring to.

It’s all a smoke and mirrors anyway. Carlin was right.

Regards,
LR

[Organic Panic]

.2% of what?

Simple maffs even for government idiots. Go to Dollar Tree and shop. Now everything is $1.25. The dish soap I use to get there is now 1/2 the size. Rubbing alcohol was 90% for a full quart and is now 70% for a pint. Everything else is smaller. I don’t blame Dollar Tree for Chomo Joe policies. Gasoline is still $5 a gallon. And idiots are still going to vote for his whore. God help us.