Originally Posted by Houston_2
Originally Posted by Dutch
Originally Posted by STRSWilson
And Survey Says:

Consumer price index eases to 8.5%

The Market seems happy with the news as futures rise 400+ points.


And before the usual mindless ad hominem attacks begin, I am not championing a CPI of 8.5% or taking a victory lap or a closet socialist or apologist for Biden's bungling of the economy...

It IS funny how the Mainstream Media is welcoming the 8.5% as the second coming of Christ.

However, the 8.5% is (economically) an irrelevant number. Yes, it's real, yes it's a s#it show. But the 8.5% happened over the past 11 months, because it's a year/year number.

The relevant number is the monthly increase since June, which was 0. May to June inflation was 1.3%. That is inflation going away completely. (You may notice that they are reporting CPI, not Core CPI or CPE, as they have done during the run up, since these show politically less desirable numbers; but I digress).

That, of course, begs the question: what does a sudden stop in inflation mean? It meant people and companies quit buying stuff, and that's there's more stuff than the economy needs.

Also known as "recession".

But, by all means, let's celebrate inflation going away.


Stagflation would be another scenario possibility and we don’t want to go there.

Supposedly the FED target has been a 2% Inflation goal. If we somehow get a soft landing it’ll be purely by accident. Right now it looks like the landing will most likely be a wheels up one.

But the stock market is liking it at the moment.

Jmo


Staglation is exactly what we are in the process of right this minute. The Ford and Carter presidency was the only time I can remember it happening in the past.

Are wages keeping up with inflation? GDP is low. Stagnant economy and inflation.