Hacker News Board Hacker News, browsed like a classic message board
Live data from Hacker News

U.S. annual inflation rate drops to 8.5%

bls.gov

Post reply on HN
Print view View original

71–80 of 918 posts

Re: U.S. annual inflation rate drops to 8.5%

#71

Post by partiallypro »

wun0ne wrote: post #3

Just as the transient inflation camp emptied...

It wouldn't be transient though...it's been 1.5 years and prices aren't going down, they are just rising at a slower pace. I don't view that as "transitory." The transitory camp thought it would be a few months, it's been almost 2 years of relentless price hikes.

Re: U.S. annual inflation rate drops to 8.5%

#72

Post by ChrisLomont »

post_break wrote: post #36

Good news I guess. But my electricity price literally doubled. My house insurance is up 30%. My gas bill is up by a lot. Have you seen the price of oreos? The $5 box at Taco Bell is my splurge and I'm trying to cut back on everything I can.

>But my electricity price literally doubled.

What supplier and location, out of curiosity?

Re: U.S. annual inflation rate drops to 8.5%

#73

Post by kurupt213 »

yieldcrv wrote: post #24

is there really no better way to calculate this? 9.1% between june 2021 and june 2022 8.5% between july 2021 and july 2022 its just not really conveying everything... well?

they don't want make it easy to figure out how much prices have spiked since inflation took off

Re: U.S. annual inflation rate drops to 8.5%

#76

Post by post_break »

ChrisLomont wrote: post #72
post_break wrote: post #36

Good news I guess. But my electricity price literally doubled. My house insurance is up 30%. My gas bill is up by a lot. Have you seen the price of oreos? The $5 box at Taco Bell is my splurge and I'm trying to cut back on everything I can.

>But my electricity price literally doubled. What supplier and location, out of curiosity?

The open market of Texas, sigh.

Re: U.S. annual inflation rate drops to 8.5%

#77

Post by ambientenv »

It is interesting, at best, aggravating mostly, that folks are still adamant that we can apply the heuristics of the past to conditions in the present. Evidence suggests we cannot. Governments, government bodies and other vested interests around the globe are covertly managing (taking liberties with the "numbers"?) the downward spiral in order to maintain some semblance of control and not have everything derail too quickly or catastrophically [1]. This includes but not limited to all the movement on digital currencies and ID's, and the dreams of the WEF and associated minions. The climate crisis and the emerging reality that we can no longer live on a finite planet with goals of infinite growth [2] will force discontinuities and catastrophes that are hard to fully imagine, never mind prepare for. There is solid evidence that fossil fuel availability - the cheap to extract kind - is in steady decline now [3], so excitement over falling pump prices is misplaced. The economy is energy and energy is the economy and all of the impacts of our economic and cultural decline have yet to reveal and play themselves out.

[1] In economics there is a proposition known as Dornbusch’s Law that states: Crises take longer to arrive than you can imagine, but when they do come, they happen faster than you can possibly imagine.

[2] https://www.resilience.org/stories/2022-08-08/the-renewed-cl...

[3] https://www.resilience.org/stories/2022-08-03/the-status-of-...

Re: U.S. annual inflation rate drops to 8.5%

#78

Post by roflyear »

ChrisLomont wrote: post #72
post_break wrote: post #36

Good news I guess. But my electricity price literally doubled. My house insurance is up 30%. My gas bill is up by a lot. Have you seen the price of oreos? The $5 box at Taco Bell is my splurge and I'm trying to cut back on everything I can.

>But my electricity price literally doubled. What supplier and location, out of curiosity?

No post body was provided.

Re: U.S. annual inflation rate drops to 8.5%

#79

Post by silent_cal »

numbsafari wrote: post #18
lake_vincent wrote: post #4

Quoted post unavailable.

The Fed doesn't report inflation, the Bureau of Labor Statistics does. Maybe they're all part of the same Illuminati-style über conspiracy. But, in theory, they are independent of each other for a reason.

I would suggest that it's naive to think the Fed is truly independent from the executive branch.

Re: U.S. annual inflation rate drops to 8.5%

#80

Post by chaorace »

altdataseller wrote: post #10

Whats the goal? At what inflation rate will the Fed be happy with?

As others have pointed out, the stated goal is 2%. Keep in mind, however, that the Fed's founding mandate is to balance price stability with unemployment. The mandate takes priority over their stated inflation target, so don't be too surprised if the Fed pivots strategy sooner depending on how the labor market evolves.

You should also keep in mind that inflation trends tend to lag behind monetary policy, so the Fed will actually pivot strategies ~6-12 months prior to when the inflation rate is projected to return to 2%. This means that the actual rate we land at will be a lot more imprecise -- potentially as high as 4% or as low as 1% -- while policy gets dialed in. The Fed has historically been fine with a sine-wave pattern of this nature so long as it averages out to 2% over time (there will also probably be some magical thinking in underweighing the past 12 months of extraordinary inflation for the purposes of such averages).

One last thing: the Fed typically uses the core PCE for measuring inflation, which excludes food and energy prices, since they're prone to price shocks. The year-over-year core PCE was 4.8% for the month of July. They'll probably choose to overshoot this measure, however, since inflation sentiment over the CPI is highly negative.

Post reply on HN