US Inflation Cools as Interest Rate Decision Looms

Wednesday, June 12, 2024

Consumer price rises in the US eased slightly last month, official data suggests, ahead of a key meeting where policymakers will publish their latest interest rate decision.

Posted by REDIAL at 11:30 PM | 12 COMMENTS | permalink | Comment on This Entry |

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I doubt if this one data point is going to have any effect upon this afternoon's rate decision.

#1 | Posted by LampLighter at 2024-06-12 12:26 PM | Reply

Yep, it is now rising at a slower pace : )

#2 | Posted by MSgt at 2024-06-12 12:43 PM | Reply | Newsworthy 1

@#2

Agreed.

It looks like disinflation is still in effect, though there were some areas where the prices decreased (new cars, for example).

It is a balancing act to get to the long-term target of 2% inflation without pushing the economy into a recession or, worse, stagflation (high inflation and a stagnant economy).

But, again, this is just one data point. I prefer a three-period moving average.

#3 | Posted by LampLighter at 2024-06-12 01:14 PM | Reply

#2 a pace more in line with the rate of increase we've all dealt with for the last several decades.

In other words, things are normalizing.

#4 | Posted by jpw at 2024-06-12 04:55 PM | Reply

@#4 ... things are normalizing. ...

I agree.

But perhaps not as quickly a many (including Fed Chair Powell) had hoped.

On the other hand, the slow approach is keeping the job market robust.

#5 | Posted by LampLighter at 2024-06-12 07:57 PM | Reply

Deflation is very bad. People think they want prices to go down, but don't realize it really damages an economy. Disinflation is the goal, and a good one.

#6 | Posted by gtbritishskull at 2024-06-13 08:31 AM | Reply

This economy sucks! That Biden is wrecking 'Murica! I'm gonna ask off from my work so I can go roll coal all over town, wavin' my MAGA flag from the back of my dualie, now that diesel prices have come down. What's that?!? The boss says I can't take off 'cause we just got some more orders from the Defense Department, so we're now workin' six days for the next three months? Damn that Biden...
--MAGA economist and machinist at the weapons plant

#7 | Posted by catdog at 2024-06-13 09:36 AM | Reply

Yep, it is now rising at a slower pace : )

#2 | POSTED BY MSGT

Isn't that what we wanted?

#8 | Posted by Sycophant at 2024-06-13 10:52 AM | Reply

Isn't that what we wanted?

#8 | Posted by Sycophant at 2024-06-13 10:52 AM | Reply | Flag:

Not really. 1-3% would be jsut fine with most. Funny what you'll accept as a "win" in an election year.

#9 | Posted by lfthndthrds at 2024-06-13 04:38 PM | Reply

It's at something like 3.4%.

Given where it was, that is a "win" if you're into looking for such things.

#10 | Posted by jpw at 2024-06-14 08:29 AM | Reply

-Deflation is very bad. People think they want prices to go down, but don't realize it really damages an economy.

There are losers for sure when that happens. It's unavoidable.

House is the best example. People pay high prices for a house then circumstances forces them to sell and the market is down....they lose.

But it's the reality if you want housing to become more affordable.

#11 | Posted by eberly at 2024-06-14 09:09 AM | Reply

But it's the reality if you want housing to become more affordable.

POSTED BY EBERLY

Not anymore due to the sheer amounts of money buying up available single family housing for investment purposes. As long as there aren't enough houses for the amount of people needing one, the rise in prices will continue unabated until reaching the point enough people cannot afford the rents being charged by those buying up the housing stocks that they're forced to either sell lower or accept lessor rents.

It's a supply and demand equation and availability is nowhere near where it should be all across this nation, but particularly in most urban/suburban areas.

#12 | Posted by tonyroma at 2024-06-14 10:30 AM | Reply