U.S. inflation falls to 3%, lowest level in more than 2 years, as price pressures ease

“WASHINGTON — After two years of painfully high prices, inflation in the United States has reached its lowest point in more than two years — 3% in June compared with 12 months earlier — a sign that the Federal Reserve’s interest rate hikes have steadily slowed price increases across the economy.

The inflation figure the government reported Wednesday was down sharply from a 4% annual rate in May, though still above the Fed’s 2% target rate. Over the past 12 months, gas prices have dropped, grocery costs have risen more slowly and used cars have become less expensive.”

https://www.politico.com/news/2023/...o years of,price increases across the economy.

Coupled with an unemployment rate which is nearing record lows, it would seem that ‘Bidenomics’ is serving the American people well. Of course, there are many on these pages who will either ignore the good news, or deflect to ‘Hunter’s laptop’ or the like. So predictable…

 

Weeeeeelllllll. We're still dealing with 15.5% inflation since the beginning of the Biden area. Don't open the champagne yet.

 

its such a wierd world we live in now. This stuff is supposed to make a difference in politics. But as I understand it, these days if you ask people about the economy, they can only respond by filtering through their hyperpartisan politics. In other words, if you ask a MAGA Republican in a poll, not only will inflation still be raging, the unemployment rates are skyrocketing to new highs too even if he does not know anyone who is unemployed! I am sure that's because the 'deep state' establishment is faking the numbers.

 

I was reading the other day that these kinds of economic results would normally pave an incumbent’s path towards a 50 state majority. But, as you indicate, this is an era in which the cults will retreat to their enclaves and mindlessly parrot the words of their demagogues…

 

Got a link for that? As usual, you make a claim but don't provide proof. Typical.

 

BLS.gov

 

We'll see. This could also be sign of a recession coming. The inverted yield curve, the restart of student loan payments, dysfunction not just in Congress but in many state houses.....lots of things out there that could slide the car off the road.

 

There is no handbreak or nitro button in this. Trump caused all of this, and it takes Biden 2 years to get it reeled back on track.
And yeah, Trump caused this. His plan was to lower taxes for big corp. America with the idea that this money would be invested back into the economy.
With more money in the economy, he thought he would get the same revenue with lower taxes.

But corp. America just gave their massive extra profits to the shareholders who did not invest. The piggy bank of corp. America was drained dry by them. And when Covid hit, Trump was made to give away money to them, for the sake to not make them go bankrupt. While all in all, the income of his taxes was crap as well. Ergo: he made the rich a hell of a lot richer with his tax reforms while companies itself were barely surviving... by handing out money. And a lot of free money causes inflation.

 

I mean.. compared to the Reagan presidency, we had 10.3% in 1981, 6.1% in 1982, and 3.2% in 1983, with an unemployment rate of 8.3% and poverty rate of 15.2 percent. Under Biden we've had an inflation rate of 4.7% in 2021, 8.0% in 2022, with a projected 2.50% inflation rate for 2023, and our current unemployment rate is 3.6% and poverty rate is 11.6%

Based on the numbers, you would have be insane to take 1983 over 2023... yet the narrative seems to be that the former was our greatest first term economic performance in history, which resulted in the greatest reelection victory in history, with 49 out of 50 states won.

 

I posted this in another thread, and it very apropos here:

Prices go up, but they rarely go down. In todays economy, we call it inflation, when in reality is is usually just price gauging to increase profits. From May 2020 - July 2022 inflation increased to 9%, “coincidently” Corporate profits rose by almost 10% in that very same time period……hmmmmmmm

 

I guess it’s “morning in America”….again…?

 

You have bought the baloney.

The numbers the Biden administration provides are manipulated and cosmetic and do not reflect real-world conditions. While they sound good, there is no way to fake yourself into prosperity and stability- but you can fool some of the people into thinking you have. Of course, you can't fool all of the people all of the time.... just the real fools.

Unemployment report numbers depends on applications for unemployment- and many people no longer seek jobs, they seek patches that will get them by for a few days when they need money... and then go dormant until they are dead broke again. I've been an employer for over 50 years. I've got people coming in who want to work- but ask if they can be paid every day. And they don't work- they do as little as possible to get by and are not productive, not really valuable. People who fail to return for a week once they have a little money. People who spend time, but accomplish little. It's never been this bad before.
We do not have high employment, we have low numbers of people who want to work. The government has subsidized so many things through the pandemic and promised so much free things (which it can't deliver) that the less motivated in the nation are just sitting by, waiting for the handouts.

Quoted inflation numbers are produced by a formula- which is selective as to what is included. Even if inflation were zero today, so much damage has already been done to our economic system that the future is looking quite dim. I'm not only saying we will not thrive; I'm saying we may not survive in any recognizable form to the society we had 5 years ago. The inflation over that period is massive. For example, the cost of a home, which is not part of the basic formula for generating the inflation data but is damn sure part of everyone's cost of living, is roughly twice what it was before Biden. It used to require an income of about $56K to be able to buy a median house- now it's about $107K If you don't own, you rent,-and the cost of the property you rent controls the rent you will pay. Everyone is affected.

"Bidenomics" is smoke and mirrors hiding gross incompetence and fiscal disaster. Forget the claims they make- look at the results they are producing. Small businesses all over the country are having serious financial problems. While they don't get the publicity, there are far more of them than the big names, and they are the majority of the overall economic picture.

An old man once told me that "the paper will hold still, you can write anything you want on it." What the administration claims is like that. Look to the tangible results- and quit being the rube that buys the BS.
Then you may have a realistic view of the state of the nation.

 

It's mostly good news, but I must point out that gas prices have actually gone up @ 45 cents/gal since XMAS and grocery costs need to STOP rising at all (or God forbid, have a few things start returning to their pre-pandemic cost) before people will feel comfortable saying the economy is "good"... It's what they see every day that leads to that response.

Also useful to have a POTUS not daily criticizing the Fed and letting them do the job they were appointed to do....

 

Q: Did you stop beating your wife?

A: The beatings are fewer than they were two years ago.

 

This will really bum out the maga horde.

 

Inflation compounds. Just because the speed of the inflation slowed down, doesn't negate the increases in CPI from prior periods.

 

Just out of curiousity, why do you think the Fed targets a 2% annual growth rate?

Are they wrong?

 

No, because new bullshit is no more credible or valid than the old bullshit.

We need TANGIBLE POSITIVE RESULTS.
We have TANGIBLE NEGATIVE RESULTS.

These are NOT the same thing.

 

A 1% change in the rate of increase of something that has already caused suffering for multiple years. I'm devastated. It's the worst thing that has happened since my newspaper got wet this morning.

Wake me if the rate ever goes negative.

 

That's a good point.

The increase in the rate of beatings are fewer than they were 2 years ago.

 

Lol…you’d be having wet dreams about it if trump had managed this.
But we understand your need to hope for a failed economy.

 

Don’t forget the Faux misinformation bubble

 

Unfortunately most are still seeing the misinformation on Faux - they are telling everyone the complete opposite of what is happening

 

I agree 100%. If prices in general were to lower, it would be better news and that's how most people view, the bottom price of things. I seriously doubt any manufacturer or retailer are going to lower their prices, and no way are the oil companies going to search and drill for more oil just to lower their profits.

 

Good post! Very true, unfortunately no doubt doomed to fall on deaf ears by people who are politically disposed to ignoring it coupled with the fact they never go outside, let alone do some basic shopping for themselves