June PCE Report: PCE Inflation Index Up 2.6%, Stronger Than Expected

[Trumpetman]

Are you all right?

I'm fine. Libtards seem mad no one buys their gaslighting anymore.

 

[Airyaman]

If the economy grows faster than inflation then prices go down. They don't go down as raw numbers but they do go down with regard to purchasing power.

You don't seem to understand how this works.

What are you even talking about? Prices are going up, not sure why you are talking about them going down.

 

[Airyaman]

Comical. One part of the chart is somehow irrelevant? LOL

Because that is the past. Not sure why MAGA wants to live in the past when the present is what we are dealing with.

 

[Airyaman]

It's not whataboutism. It's a direct refutation of an idiotic statement.

"And inflation is now accelerating again."​

Inflation is NOT accelerating.

It's going up. How is that not "accelerating"? It's not decelerating or cruising, so that leaves only one option.

 

[Trumpetman]

What are you even talking about? Prices are going up, not sure why you are talking about them going down.

Purchasing power is what I am talking about.

Purchasing power - Wikipedia

en.wikipedia.org

Educate yourself.

 

[dmpi]

Because that is the past. Not sure why MAGA wants to live in the past when the present is what we are dealing with.

A chart compares the past with the present in a easy to digest visual form. That's the whole idea.

 

[Airyaman]

A chart compares the past with the present in a easy to digest visual form. That's the whole idea.

And? We all know there was inflation during Biden's term. It started to go down. Now it's going back up.

 

[Airyaman]

Purchasing power is what I am talking about.

Purchasing power - Wikipedia

en.wikipedia.org

Educate yourself.

And that has what to do with this thread?

 

[Trumpetman]

And that has what to do with this thread?

It has to do with understanding the nature of inflation. It is a precursor to understanding who inflation is a concern.

 

[Airyaman]

It has to do with understanding the nature of inflation. It is a precursor to understanding who inflation is a concern.

Well, inflation was a concern to MAGA...until Trump.

You make it future tense. We've seen it already for the entire Biden first term. Every person killed in a city where police were told to stand down or where budgets were cut, every person killed by someone illegally in the country, every person watching inflation kill their purchasing power for groceries, energy and shelter are all put last by Democrats.

Harris will have to answer for his and her record over the last four years. You realize that she doesn't get a pass just because you'd prefer to ignore inflation, illegal immigration, Ukraine and more.

 

[Fletch]

All those figures are inflation, that’s a graph of the growth of a price index. And inflation is now accelerating again.

Nah, inflation is transitory. Nothing to see here.

 

[Trumpetman]

Well, inflation was a concern to MAGA...until Trump.

You literally quote me talking about purchasing power and then try to make it sound like I'm being hypocritical when it is right there quoted.

Go inform yourself about purchasing power.

If you get a 10% raise and prices go up 5%, you can purchase more and feel richer.

If you get a 0% raise and prices go up 2% you can purchase less and feel poorer.

Go inform yourself on purchasing power.

 

[Airyaman]

You literally quote me talking about purchasing power and then try to make it sound like I'm being hypocritical when it is right there quoted.

Go inform yourself about purchasing power.

If you get a 10% raise and prices go up 5%, you can purchase more and feel richer.

If you get a 0% raise and prices go up 2% you can purchase less and feel poorer.

Go inform yourself on purchasing power.

So what you are saying is that inflation no longer damages purchasing power as you said in 2024. You specifically said "every person watching inflation kill their purchasing power for groceries, energy and shelter are all put last by Democrats."

So the increasing inflation doesn't "kill" purchasing power under Trump?

Tell us how that works.

 

[Metric Mouse]

Holy shit. Lower than any point under Biden.

If we reach the inflation rates of his term, it will be bad.

 

[Fletch]

Nope. Trump told us he was going reduce prices and inflation. Both are going up.

No, inflation has been in a range for over a year now. But since the FED isw perfectly content with a 2% inflation rate, can you tell me why a 2.6% inflation rate has you so excited?

 

[Airyaman]

No, inflation has been in a range for over a year now. But since the FED isw perfectly content with a 2% inflation rate, can you tell me why a 2.6% inflation rate has you so excited?

Not excited, just sharing the data and pointing out that MAGA doesn't really care about inflation under Trump.

Trump says he'll end the "inflation nightmare." Economists say Trumponomics could drive up prices.

Although Donald Trump vows to bring U.S. prices down "very quickly," some economists say his policies could rekindle inflation. Here's what to know.

www.cbsnews.com

 

[Trumpetman]

So what you are saying is that inflation no longer damages purchasing power as you said in 2024. You specifically said "every person watching inflation kill their purchasing power for groceries, energy and shelter are all put last by Democrats."

So the increasing inflation doesn't "kill" purchasing power under Trump?

Tell us how that works.

It kills purchasing power when inflation is higher than the rate of economic growth.

I tried to explain that to you above with the proxy of salary for economic growth. Most people cannot understand economic growth but they can understand their pay check.

Can you understand it at this point?

Inflation was killing their purchasing power because the rate of inflation was higher than the rate of economic growth. When you see the top of that chart during the Biden years the rate of inflation was 6-7%.

The economy was not growing at 6-7%.

There's a reason the Fed has a TARGET for inflation of sub 2%. It isn't because it thinks prices will fall or that inflation can be made to disappear. It is because they think the economy will grow more than 2% a year and thus inflation is CONTAINED and RESTRAINED.

The point is 2% is the target in part because our giant economy doesn't grow much faster than that at this stage as a norm. However if our economy were suddenly capable of 10% growth and inflation were 5% you'd have more purchasing power.

This is also why citing any statistic in isolation is pointless. You need context.

 

[Airyaman]

Holy shit. Lower than any point under Biden.

If we reach the inflation rates of his term, it will be bad.

False.

2.6% PCE now.

Personal Income and Outlays, September 2024 | U.S. Bureau of Economic Analysis (BEA)

Personal income Personal income increased $71.6 billion (0.3 percent at a monthly rate) in September, according to estimates released today by the U.S. Bureau of Economic Analysis (tables 2 and 3). Disposable personal income (DPI), personal income less personal current taxes, increased $57.4...

www.bea.gov

 

[Michael Cole]

It has to do with understanding the nature of inflation. It is a precursor to understanding who inflation is a concern.

The nature of inflation caused by tariffs is well understood. The effects are no different than raising the price of steel 50%.

 

[Trumpetman]

The nature of inflation caused by tariffs is well understood. The effects are no different than raising the price of steel 50%.

It's so well understood that all the predictions related to them have proven wrong.

 

[Airyaman]

It kills purchasing power when inflation is higher than the rate of economic growth.

I tried to explain that to you above with the proxy of salary for economic growth. Most people cannot understand economic growth but they can understand their pay check.

Can you understand it at this point?

Inflation was killing their purchasing power because the rate of inflation was higher than the rate of economic growth. When you see the top of that chart during the Biden years the rate of inflation was 6-7%.

The economy was not growing at 6-7%.

There's a reason the Fed has a TARGET for inflation of sub 2%. It isn't because it thinks prices will fall or that inflation can be made to disappear. It is because they think the economy will grow more than 2% a year and thus inflation is CONTAINED and RESTRAINED.

The point is 2% is the target in part because our giant economy doesn't grow much faster than that at this stage as a norm. However if our economy were suddenly capable of 10% growth and inflation were 5% you'd have more purchasing power.

This is also why citing any statistic in isolation is pointless. You need context.

But you made those posts in 2024 when the GDP was solid and inflation was mid 2s.

So you didn't really care about 2024 inflation after all.

 

[Trumpetman]

But you made those posts in 2024 when the GDP was solid and inflation was mid 2s.

So you didn't really care about 2024 inflation after all.

Yes and the context of that discussion... because again isolation is pointless, was a judgement on the entire Biden first term. I literally was repeating the top priorities that voters were going to use to pass judgment on the candidates.

I was 100% right and hence, Trump won.

Hint, I'm still 100% right.

 

[Fletch]

Not excited, just sharing the data and pointing out that MAGA doesn't really care about inflation under Trump.

Trump says he'll end the "inflation nightmare." Economists say Trumponomics could drive up prices.

Although Donald Trump vows to bring U.S. prices down "very quickly," some economists say his policies could rekindle inflation. Here's what to know.

www.cbsnews.com

Inflation at around 2.5% seems to be the new normal. The FED seems content with that rate since they lowered rates a year ago when inflation was at this point and has signaled that it will cut them again in the near future

 

[Michael Cole]

It's so well understood that all the predictions related to them have proven wrong.

Silly response.

Tariffs are a tax that raises the cost of imported goods. This isn't a prediction. Not a theory. Tariffs on steel and aluminum have exactly the same economic effect as raising the price 50%. This is factual. It's well understood that increased costs to producers results in inflation.

I don't care about predictions. Predictions are a red herring. I'm talking about raising production costs, which fuels inflation. Very well understood for centuries.

 

[Airyaman]

Inflation at around 2.5% seems to be the new normal. The FED seems content with that rate since they lowered rates a year ago when inflation was at this point and has signaled that it will cut them again in the near future

Yes, if inflation holds they may cut them, but I don't think it will hold. Particularly if the tariffs on the rest of the world go in effect at 0001 August 1st.