a significant factor driving inflation post pandemic was an overheated economy. https://www.investopedia.com/terms/o/overheated_economy.asp
I can't wait until the next job's report. They will tell us that billions of jobs have been created. The largest job creation in the world has ever seen.
Imo, the OP is being intellectually dishonest here. And I just don’t understand why. trump HAS done SOME good things. But, to deny the overall train wreck the economy seems to be heading for is absolutely laughable……and dishonest.
Funny. If you look at the label underneath "BISTEC DE RINONADA SIN HUESO" it says "PRODUCT OF USA"". Now that's what I call fair tariffs.
Has any of those "shelter thingys" been built and opened with products that have been tariffed yet? If not, how would those prices have been figured into last month's cpi numbers.
You're trying to spike the ball before crossing the goal line. Do you think tariffs will increase or decrease the cost of building/maintenance materials? If you claim no effect, then please explain.
I'm making the point there was no effect in the July numbers which is what this thread is about. Eventually there will be some effect, but not last month.
Utility costs are a part of the shelter price used for CPI. Here's another link that shows tariffs are causing utility prices too rise. Again, things like chemicals used to make water potable come from overseas. So do a lot of parts and machinery used to keep power plants open. And when utility operation costs go up, they get passed along to the consumer, which causes the shelter portion of the CPI to go up.
That's mainly gas prices. Electricity prices fell only .1% in July, and are 5.5% higher YoY. And water/sewer rates were up .2% in July, and up around 5% already YTD.
And Producer Price Index comes in at 0.9% for the month. Much higher than expected. Moves the overall rate to 3.3%. Much of the rise was due to trade services especially for machinery What could have possibly caused a dramatic increase at a monthly level for the cost of machinery? Wholesale prices rose 0.9% in July, much more than expected
While not always true, a high PPI is often an early indicator for a later rise in CPI. Things like increased competition can cause companies not to pass along all PPI increases onto customers. But this is the exception, not the norm. There's another indicator that shows we're in for difficult economic times. The cardboard box business is slowing down. A 5% YoY drop with major players closing up some smaller plants. A part of the issue? Uncertainty on tariffs and how that will effect bigger box products. What the box companies don't want is large boxes sitting unused in a pile in a corner of their warehouse collecting dust.
Inflation is going to increase. But it will be interesting to see by how much given the slowdown in the economy Trump's tariffs and policy chaos is causing. Two opposing forces.
That is likely true. Tariffs will increase inflation for the year after they are implemented but not likely beyond that. What will continue for longer is the lower economic growth the tariffs will cause.
Unless the SCOTUS rules that Trump's tariffs violate the Constitution we can expect multiyear inflation for the first time since the late '70s/early '80s. Also for the first time since that period we can expect stagflation i.e. higher inflation accompanied by lower economic growth.
