Staff Reports
Inflation can be a real pain in the wallet, but hey, there’s some good news! According to the Consumer Price Index (CPI) report for June, inflation has eased. And by “eased,” they mean it went down to 3 percent from last year. That’s the lowest it’s been since way back in 2021. Woohoo!
Inflation Eased to 3 Percent in June, but More Rate Hikes Could Be Coming https://t.co/86eRpsZwvo
— RedState (@RedState) July 12, 2023
Now, if you’re not a math whiz, let me break it down for you. On a month-to-month basis, inflation went up by just 0.2 percent. That may not sound like a big deal, but it’s actually a sign that inflation is slowing down. So, while we’re not out of the woods yet, at least we’re not running straight into a raging inflational forest fire.
But hold your horses, folks, because even though 3 percent is lower than before, it’s still higher than the Federal Reserve’s target of 2 percent. And you know what that means? More rate hikes could be on the way! Yeehaw! After taking a little break from raising rates, the Fed might just saddle up and do it again.
Those smarty-pants Wall Street economists thought consumer prices would rise by 3.1 percent, but turns out they were a little off. Darn, those folks are usually so good at predicting things. But hey, I guess that’s why they’re on Wall Street and we’re just sitting here reading about it.
When you take out the crazy prices of food and energy, the core CPI numbers showed inflation went up by 4.8 percent from last year and 0.2 percent from last month. That’s a bit worrisome, since those numbers are still higher than what the Wall Street folks expected. We’re all just trying to catch a break, but it seems like prices keep climbing no matter what we do.
The Fed has been trying their darndest to knock inflation down with rate hikes, but it’s like trying to put out a fire with a squirt gun. They took a break from raising rates in June to see if their efforts were doing anything, and now it looks like they’ll continue the fight. The current interest rate is around 5 to 5.25 percent, but the Fed won’t be satisfied until inflation is at or below 2 percent. They’re not giving up without a fight, that’s for sure.
Now, before you start whooping and hollering because inflation is easing, don’t get too comfortable. The Fed is still likely to raise rates again at their meeting later this month. It’s like a never-ending roller coaster of rate hikes and economic uncertainty. Good times, my friends. Good times.
Speaking of uncertainty, there have been whispers of a recession looming in the dark corners of the economy. Some folks even thought it would hit this year. But guess what? The economy has been holding on tight, proving those naysayers wrong. But don’t let your guard down just yet. The end of this year or the beginning of 2024 could still bring doom and gloom if things don’t shape up.
So there you have it, folks. Inflation may be easing, but the battle is far from over. Keep your eyes peeled for more rate hikes and hold on tight, because this economy is like a wild bronco that just won’t quit. Stay tuned for more updates, right here at RedState, where we’re keeping a close eye on all the news that matters to conservatives. Yeehaw!
