U.S. inflation was up by less in July. This does not mean prices are going down, despite headlines saying that inflation is “cooling.” This only means that they are going up less fast.
The media frames this as a win because experts had expected a 3% increase. This nominally smaller number lays the path for the Federal Reserve to lower interest rates in September.
This really doesn’t help consumers much. The cost of housing rose faster in July than it did in June and the unemployment rate is still up to 4.3%. Those who are working see lower wages and earnings than ever.
It’s not great, no matter how you spin it yet the government shows no sign of decreasing their spending. Congress has to agree on a new plan to fund the federal government by September 30 to avoid a shutdown and so far there is no consensus. Stop me if you think you’ve heard this one before.
