Winston
Platinum Member
Damn but you guys are stupid. What the fawk you mean it didn't go down. Where I went to school, 8.5% is less than 9.1%, and it is even less than 8.7%.The inflation rate for July 2022 is still 8.5%, it didn't go up or down and it sure as hell is not zero. Maybe NBC News will convince you:
Inflation reached 8.5% in July, compared with a 40-year high of 9.1% in June, providing a measure of relief to consumers as gas prices drop.
Economists surveyed by The Wall Street Journal had projected inflation in July to fall to 8.7%. On a month-to-month basis, the July Consumer Price Index reading was unchanged from June — meaning no price growth was registered. That compares with June's month-on-month increase of 1.3%.
Consumer prices rose by 8.5% year over year in July as the summer of inflation wears on
A key measure of inflation, the Consumer Price Index, remained near 40-year highs for another month, even as the Federal Reserve tries to slow demand.www.nbcnews.com
Saying inflation is zero is at best misinformation, and I think you know that. What that number means is that the annualized rate of inflation in July over what it was last July is 8.5%. Biden is therefore NOT accurate and neither are you.
I got a message from my son as soon as the news was released. Mostly because I called this weeks ago. Breaking the report down, food prices are still increasing, shelter as well as rents the higher interest rates have not yet translated into lower home prices. This is all about energy. Gas prices have declined due to three factors. Release from the STOR, declining crude prices, and declining demand as consumers make adjustments.
But I can tell you, food price increases have about played out. Ukraine is now exporting wheat and fertilizer. Depressed crop yields are still having an impact, but supply chain issues are becoming resolved in most categories. So much so that inventory levels on non-durable goods are high enough that discounting is becoming the norm.
And that is just it. These egg heads at the FED don't seem to realize that discount rate increases have a lagging effect. Hopefully, they have enough sense not to increase it again next month, but I ain't holding my breath. We are about to get to the point that shorting Treasuries might be a play. If it were me, I would cut the discount rate by 50 basis points next month because the 75 basis point increase last month was too much.