“Hi Taylor,
There are a lot of nuances when it comes to inflation. The feds mainly focus on the core CPI/inflation more than the headline CPI. That was 4.3% in August 2023. And fed’s target is 2%. So we are almost double where we should be. The main concern with inflation is, even though it has been coming down, will it reaccelerate is the concern as the consumer spending is not slowing down and the job market is still tight and GDP growth has been higher than anyone anticipated.
Also, another point experts are making is that, getting that last 1% lower in core inflation is going to be extremely difficult. In other words, getting the core inflation from 3% handle to 2% handle. So there is a lot of going on with these numbers.
Also the recent oil price increase is throwing a wrench into the recent disinflation. As you know, oil price increase impacts the whole economy and the prices of everything.”
Phxchn via Apple Podcasts ·
United States of America ·
09/27/23