Due to the drop in the cost of gasoline and other energy products, causing the CPI for August of 2019 to rise. This still is nothing to the .3% increase we saw in July which was due to more increase in energy prices. Inflation has also risen .3% and 2.4% over the last yearn which the Federal Reserve has been worrying that it is not rising fast enough and citing this as one of the reasons they decided to cut interest rates in July.
https://www.cnbc.com/2019/09/12/us-consumer-price-index-august-2019.html
I find it intriguing that another person's post mentions how President Trump is thinking about having the interest rates be zero or negative. When there is a rise in the CPI, that means that there's inflation. Overall the CPI indicates the cost of living for a typical consumer. Will inflation continue to rise?
ReplyDeleteI think inflation will continue to rise since we can handle a little bit of inflation in order to sustain consistent economic growth and in part due to tariffs as well which has raised overall price levels for many products that we import.
DeleteCertainly if there is a substantial interest rate cut then we will see a spike in inflation. I think that a small interest rate cut would be mutually beneficial to increase consumption and business investment with the trade war going on, as well as to increase inflation to a more comfortable clip
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