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

US annual inflation declines to 7.1% in November vs. 7.3% expected

bls.gov

Post reply on HN
Print view View original

11–20 of 163 posts

Re: US annual inflation declines to 7.1% in November vs. 7.3% expected

#11

Post by n8cpdx »

OgAstorga wrote: post #5
cheaprentalyeti wrote: post #3

I suspect some of this is because the level of economic activity is dropping.

As expected. As interest rates rise more capital that would otherwise be allocated on businesses, real estate, stocks, etcetera is redirected into safer and now more attractive bets like bonds and interest rates tied instruments

It’s amazing seeing all of society stumbling towards re-learning basic economics after being in a collective fugue/mass delusion for 2020-2021.

Fed discovers relationship between interest rates and inflation, more at 11.

Re: US annual inflation declines to 7.1% in November vs. 7.3% expected

#12

Post by _jal »

sgerenser wrote: post #2

"The Consumer Price Index for All Urban Consumers (CPI-U) rose 0.1 percent in November on a seasonally adjusted basis, after increasing 0.4 percent in October, the U.S. Bureau of Labor Statistics reported today. Over the last 12 months, the all items index increased 7.1 percent before seasonal adjustment." I feel like the rise of only 0.1% October->November is more significant than the 7.1% YOY headline number, which…

> I feel like the rise of only 0.1% October->November is more significant than the 7.1% YOY headline number

You are correct.

They always report the much more meaningless headline number. The current inflation rate is around 1.2%, well below Powell's target.

Of course we've already overshot, and are still at risk of a manufactured recession. Which was the goal, workers were getting uppity and We Can't Have That.

Re: US annual inflation declines to 7.1% in November vs. 7.3% expected

#13

Post by pwthornton »

josephcsible wrote: post #4

Remember that "declines" in this context just means that prices are going up slightly slower than they were before. It doesn't mean anything's getting any cheaper.

Yes, it is excellent news that we aren't in a deflationary environment.

Re: US annual inflation declines to 7.1% in November vs. 7.3% expected

#14

Post by MuffinFlavored »

josephcsible wrote: post #4

Remember that "declines" in this context just means that prices are going up slightly slower than they were before. It doesn't mean anything's getting any cheaper.

> It doesn't mean anything's getting any cheaper.

for anybody "out of the loop", that would be deflation and it's pretty unlikely (unless I'm wrong)

we as consumers would have to "stand up to" the corporations who are setting the prices, stop buying their products so much to the point where they have to conclude "our prices are too high, we're losing sales, let's lower them"

I could be wrong but I'm pretty sure the chances of that happening are low? would love to hear from somebody more in the know

Re: US annual inflation declines to 7.1% in November vs. 7.3% expected

#15

Post by rhacker »

sgerenser wrote: post #2

"The Consumer Price Index for All Urban Consumers (CPI-U) rose 0.1 percent in November on a seasonally adjusted basis, after increasing 0.4 percent in October, the U.S. Bureau of Labor Statistics reported today. Over the last 12 months, the all items index increased 7.1 percent before seasonal adjustment." I feel like the rise of only 0.1% October->November is more significant than the 7.1% YOY headline number, which…

The YoY that they report is definitely not useful during slight inflation like we're having. I wish the headlines were more about the month to month because I think people see the number and freak out that prices just went up 7.1 percent.

Re: US annual inflation declines to 7.1% in November vs. 7.3% expected

#16

Post by standardUser »

n8cpdx wrote: post #11
OgAstorga wrote: post #5

Earlier quoted context omitted.

As expected. As interest rates rise more capital that would otherwise be allocated on businesses, real estate, stocks, etcetera is redirected into safer and now more attractive bets like bonds and interest rates tied instruments

It’s amazing seeing all of society stumbling towards re-learning basic economics after being in a collective fugue/mass delusion for 2020-2021. Fed discovers relationship between interest rates and inflation, more at 11.

People have been "delusional" in a sense since the late 90's when inflation slowed to a crawl and everyone got used to stable prices. If inflation had been ~1% higher over these last decades, prices wouldn't be far off from where they are now and people wouldn't have flipped out so dramatically over the sudden adjustment.

Re: US annual inflation declines to 7.1% in November vs. 7.3% expected

#17

Post by ChuckNorris89 »

Wowfunhappy wrote: post #7
josephcsible wrote: post #4

Remember that "declines" in this context just means that prices are going up slightly slower than they were before. It doesn't mean anything's getting any cheaper.

Yes, if things were actually getting cheaper that would be "deflation" and it would probably be bad.

Can someone please school me on why that would be bad?

Re: US annual inflation declines to 7.1% in November vs. 7.3% expected

#19

Post by encoderer »

MuffinFlavored wrote: post #14
josephcsible wrote: post #4

Remember that "declines" in this context just means that prices are going up slightly slower than they were before. It doesn't mean anything's getting any cheaper.

> It doesn't mean anything's getting any cheaper. for anybody "out of the loop", that would be deflation and it's pretty unlikely (unless I'm wrong) we as consumers would have to "stand up to" the corporations who are setting the prices, stop buying their products so much to the point where they have to conclude "our prices are too high, we're losing sales, let's lower them" I could be wrong but I'm pretty sure the c…

The actual way this happens is that there is a severe recession or depression, there is no more discretionary income for most families, and all savings has been depleted.

Then, people start working for less money because they have to. Prices drop, and it creates a positive feedback loop because anybody that does have money is going to hold onto it while its buying power increases daily.

Re: US annual inflation declines to 7.1% in November vs. 7.3% expected

#20

Post by slg »

ChuckNorris89 wrote: post #17
Wowfunhappy wrote: post #7

Earlier quoted context omitted.

Yes, if things were actually getting cheaper that would be "deflation" and it would probably be bad.

Can someone please school me on why that would be bad?

The simplest answer is that it discourages spending because people don’t want to buy anything today if it will be cheaper tomorrow. People not buying things is a quick way to stall the economy.
Post reply on HN