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(CNBC) Core inflation rose to 2.9% in July, highest since February

Chomsky

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(CNBC) Core inflation rose to 2.9% in July, highest since February
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Inflation edged higher in July, according to the Federal Reserve’s preferred inflation measure, indicating that President Donald Trump’s tariffs are working their way through the U.S. economy.
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On a monthly basis, the core PCE index increased 0.3%
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Another month, another rising inflation report, as Trump's tariffs work their way through the American economy. The rising inflation is now knocking on 3%, having risen 0.3% to 2.9%.

Paradoxically employment has been falling the past several months (pre new BLS head reporting), leaving the Fed in the unenviable position of possibly needing to lower interest rates into rising inflation - in order to preserve the slipping job market.
 
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HenryChinaski said:
Great, thanks Obama.
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Inflation is still fairly moderate, at 2.9% last month. But, it is persistently going-up and getting into what average consumers might find "higher" territory.

If it crosses 3% (which with tariffs now kicking-in I believe will occur), we'll start seeing more panic.

What's saving Trump from real inflation is the slipping job market.
 
Helix said:
The right finally got one of its wishes : inflation is largely because of one person.
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Small changes - but steadily rising inflation and slipping employment; this is exactly what was predicted (including by me).

As of now, the effect has been relatively muted - but apparent & persistent. The previous TACO effect (now somewhat removed) has muted the brunt of the effects, I believe. It now remains to be seen what will occur going-forward with a lessened TACO effect.
 
There could not be a worse combination .......inflation plus growing unemployment and there is one person singularly responsible for both and that's Trump.
 
Gonna be running headlong into stagflation.
 
The new government statisticians couldn’t have come at a better time.
 
Things to note for those who say "but what about tariffs?"

1) Blanket tariffs on the rest of the world did not go into effect until August.
2) Alot of companies are doing their best to absorb tariffs for now but that won't hold forever.

That said, things are increasing in price. And if you take out the reaction after the pandemic, this is the highest inflation since 1993.


 
Airyaman said:
And if you take out the reaction after the pandemic, this is the highest inflation since 1993.
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Airyaman said:

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The bolded is an extremely salient point, providing great perspective.

Thank you.
 
Oh, and the trade deficit?

Tariffs aren't doing what Lyin' Donny told you they'd do.

 
Consumer Sentiment Slips in August

 
This is only the beginning of the massive inflation to come if tariffs are kept in place. So much for campaigning on the economy and promises of bringing prices down. Prepare for austerity and being told it is bitter medicine we must take for our own good. His cult is in so deep they will happily swallow it.
 
welcome to stagflation, a disease that is very difficult to cure. Welcome back 1979.

(remember, the stagnation of the 1970s' required the feds to raise interest rates to nearly 20% to break its back)
 
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But the pain Americans suffer is worth it.
 
There's limits to inflation when allegedly the consumer is broke and has no more money to spend. Funny how the left is talking out both sides of their mouth. The solution to the dilemma is they're characterizing 2.9% inflation as high! LOL
 
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