Inflation falls for fourth month in a row, now at 2.9% thumbnail

Inflation falls for fourth month in a row, now at 2.9%

In some good news for Vice President Kamala Harris and the economy, annual inflation fell to 2.9% in July — now marking four months of disinflation.

The one-tenth of a percentage point decline in the consumer price index comes as most economists expected that annual inflation would remain at 3%, the same as the month before.

Notably, inflation is now the lowest it has been since March 2021, shortly after President Joe Biden was sworn in.

On a month-to-month basis, inflation rose 0.2%.

Inflation is the biggest concern facing voters, so the White House and Harris campaign are undoubtedly breathing a sigh of relief that there wasn’t an unexpected uptick. Republicans have worked hard to tie Harris to the economy.

The Federal Reserve, which has raised interest rates to their highest level since the turn of the century, will also be pleased to see inflation continuing its descent back to earth. Continued declines may allow the Fed to cut, which would be good news for consumers and the labor market.

The elephant in the room recently has been the lackluster July employment report.

The economy added 114,000 jobs in July, far fewer than expected, and the unemployment rate rose two-tenths of a percentage point to 4.3%, the Bureau of Labor Statistics reported. That was a pretty big miss from expectations that more jobs would be added and the unemployment rate would remain at 4.1%.

If the labor market begins to start softening even more it could force the Fed’s hand in cutting rates, something that would be bad news if the inflation rate isn’t moving down.

Notably, the employment report also triggered a recession indicator known as the Sahm rule. That indicator is triggered when the three-month moving average of the unemployment rate rises half a percentage point relative to its minimum point over the past year. It has signaled the start of all post-war recessions.

CLICK HERE TO READ MORE FROM THE WASHINGTON EXAMINER

Ahead of the Wednesday CPI report, investors and economists were predicting the Fed would cut rates at its September meeting, but were split on by how much. Some expect a standard 0.25-percentage point cut while others were anticipating a bigger half percentage point revision.

All economic data will be closely watched leading up to the election. Democrats and the Biden administration have worked to emphasize bright spots in the economy, like robust economic output, while Republicans have blamed too-high inflation on the administration, and in turn, on Harris.

2024-08-14 12:33:00, http://s.wordpress.com/mshots/v1/https%3A%2F%2Fwww.washingtonexaminer.com%2Fpolicy%2Ffinance-and-economy%2F3120437%2Finflation-falls-for-fourth-month-in-a-row-now-at-2-9%2F?w=600&h=450, In some good news for Vice President Kamala Harris and the economy, annual inflation fell to 2.9% in July — now marking four months of disinflation. The one-tenth of a percentage point decline in the consumer price index comes as most economists expected that annual inflation would remain at 3%, the same as the month before. Notably, inflation is now the lowest it,

In some good news for Vice President Kamala Harris and the economy, annual inflation fell to 2.9% in July — now marking four months of disinflation.

The one-tenth of a percentage point decline in the consumer price index comes as most economists expected that annual inflation would remain at 3%, the same as the month before.

Notably, inflation is now the lowest it has been since March 2021, shortly after President Joe Biden was sworn in.

On a month-to-month basis, inflation rose 0.2%.

Inflation is the biggest concern facing voters, so the White House and Harris campaign are undoubtedly breathing a sigh of relief that there wasn’t an unexpected uptick. Republicans have worked hard to tie Harris to the economy.

The Federal Reserve, which has raised interest rates to their highest level since the turn of the century, will also be pleased to see inflation continuing its descent back to earth. Continued declines may allow the Fed to cut, which would be good news for consumers and the labor market.

The elephant in the room recently has been the lackluster July employment report.

The economy added 114,000 jobs in July, far fewer than expected, and the unemployment rate rose two-tenths of a percentage point to 4.3%, the Bureau of Labor Statistics reported. That was a pretty big miss from expectations that more jobs would be added and the unemployment rate would remain at 4.1%.

If the labor market begins to start softening even more it could force the Fed’s hand in cutting rates, something that would be bad news if the inflation rate isn’t moving down.

Notably, the employment report also triggered a recession indicator known as the Sahm rule. That indicator is triggered when the three-month moving average of the unemployment rate rises half a percentage point relative to its minimum point over the past year. It has signaled the start of all post-war recessions.

CLICK HERE TO READ MORE FROM THE WASHINGTON EXAMINER

Ahead of the Wednesday CPI report, investors and economists were predicting the Fed would cut rates at its September meeting, but were split on by how much. Some expect a standard 0.25-percentage point cut while others were anticipating a bigger half percentage point revision.

All economic data will be closely watched leading up to the election. Democrats and the Biden administration have worked to emphasize bright spots in the economy, like robust economic output, while Republicans have blamed too-high inflation on the administration, and in turn, on Harris.

, In some good news for Vice President Kamala Harris and the economy, annual inflation fell to 2.9% in July — now marking four months of disinflation. The one-tenth of a percentage point decline in the consumer price index comes as most economists expected that annual inflation would remain at 3%, the same as the month before. Notably, inflation is now the lowest it has been since March 2021, shortly after President Joe Biden was sworn in. On a month-to-month basis, inflation rose 0.2%. Inflation is the biggest concern facing voters, so the White House and Harris campaign are undoubtedly breathing a sigh of relief that there wasn’t an unexpected uptick. Republicans have worked hard to tie Harris to the economy. The Federal Reserve, which has raised interest rates to their highest level since the turn of the century, will also be pleased to see inflation continuing its descent back to earth. Continued declines may allow the Fed to cut, which would be good news for consumers and the labor market. The elephant in the room recently has been the lackluster July employment report. The economy added 114,000 jobs in July, far fewer than expected, and the unemployment rate rose two-tenths of a percentage point to 4.3%, the Bureau of Labor Statistics reported. That was a pretty big miss from expectations that more jobs would be added and the unemployment rate would remain at 4.1%. If the labor market begins to start softening even more it could force the Fed’s hand in cutting rates, something that would be bad news if the inflation rate isn’t moving down. Notably, the employment report also triggered a recession indicator known as the Sahm rule. That indicator is triggered when the three-month moving average of the unemployment rate rises half a percentage point relative to its minimum point over the past year. It has signaled the start of all post-war recessions. CLICK HERE TO READ MORE FROM THE WASHINGTON EXAMINER Ahead of the Wednesday CPI report, investors and economists were predicting the Fed would cut rates at its September meeting, but were split on by how much. Some expect a standard 0.25-percentage point cut while others were anticipating a bigger half percentage point revision. All economic data will be closely watched leading up to the election. Democrats and the Biden administration have worked to emphasize bright spots in the economy, like robust economic output, while Republicans have blamed too-high inflation on the administration, and in turn, on Harris., , Inflation falls for fourth month in a row, now at 2.9%, https://www.washingtonexaminer.com/wp-content/uploads/2024/08/july-inflation-cpi.webp, Washington Examiner, Political News and Conservative Analysis About Congress, the President, and the Federal Government, https://www.washingtonexaminer.com/wp-content/uploads/2023/11/cropped-favicon-32×32.png, https://www.washingtonexaminer.com/feed/, Zach Halaschak,

Leave a Reply

Your email address will not be published. Required fields are marked *