Year-over-year inflation reached its lowest level in more than three years in July, the latest sign that the worst price spike in four decades is fading and setting up the Federal Reserve for an interest rate cut in September.

  • yggstyle@lemmy.world
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    3 months ago

    Don’t worry they removed that cost metric from the CPI. That and any other metric that might actually be inflationary 😅. Don’t you feel better though? 2.9% !

    • yes_this_time@lemmy.world
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      3 months ago

      CPI inflation is reported higher than ‘all items’ though…

      Grocery is seeing lower inflation. Seems to have come back down to earth.

      We need wage growth to continue to outpace inflation like it has been for the past year or so.

      • yggstyle@lemmy.world
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        3 months ago

        I’d have to look but I think wage growth is falling again and of course there’s the skewed employment statistics that don’t factor in people working multiple jobs… You are dead on though. Inflation is sustainable if the rest of the growth is moving along with it … unfortunately ours isn’t resulting in the overheating.

    • shortwavesurfer
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      3 months ago

      Multiply that by 3 or 4 and you might get close to a real number.

        • yggstyle@lemmy.world
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          3 months ago

          Yep. There’s a reason they exclude power, food, fuel etc from those calculations… it looks fine on paper but reality is obviously quite different.

      • yggstyle@lemmy.world
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        3 months ago

        Yeah, that’s the joke lol. If you just don’t add anything inflationary it magically is “under control.”

        • shortwavesurfer
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          3 months ago

          Some inflation is not a problem. After all gold inflation is 1.6-1.8% per year according to the World Gold Council and many cryptos such as Monero have even less than that. Replacement levels of inflation are not a bad thing but uncontrolled fiat printing definitely is. Giving one group of humans the ability to control what everybody sees as money is guaranteed to cause that group of humans to act in their own self-interest and hurt everyone else.

          • yggstyle@lemmy.world
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            3 months ago

            Inflation isn’t inherently bad: an overheated economy, which is the result of inflation, is. This is basically where we are right now. Had the fed not gotten cold feet when they halted the rate increases we’d be in a far better position right now (sans a few banks with bad balance sheets.)

            The fiat currency discussion gets murky quickly as most everything’s value is relative and derived from something else’s value. Crypto is no different and arguably has its own set of issues.

            Ultimately regardless of the currency we as a world introduced a ton of what should have been temporary wealth during the COVID period into the markets to save lives and businesses. That money needs to go away to restore balance to the economies. This means a negative inflation rate, or put differently, deflation.

            • shortwavesurfer
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              3 months ago

              But deflation is a boogeyman according to them and they do not want that to occur and strive to do everything in their powers to prevent it.