Inflation Rate Eases, Not The Pain

Since when is a half point drop from 8.2% inflation rate cause for Joe to crow & stock market to soar? Both desperate to see Happy Days ahead. But even if inflation is moderating, still looks like stagnation if not recession.

As the WSJ noted, the “underlying price increases” EXCLUDED energy and food costs while slowing inflation on most consumer goods to a 7.7% rate from a four-decade high. Things like booze and eating out in restaurants actually got even more expensive for the average person. The result: While inflation eased by whatever for the “slowest pace since January, [it] remained high, likely keeping Federal Reserve officials on course to start slowing the pace of interest-rate rises aimed at taming price pressures.”

Notice the key WSJ code word, i.e., “start,” when it comes to the Fed’s putting the brakes on the economy, as it tries to walk a tight rope between raising its own interest rate to curb spending while not so much as to trigger a deep recession. The problem: It’s a long process regardless. And, a .5% reduction from one month to the next is hardly a sign Happy Days Are Here Again for the consumer walking through the grocery store & putting a $699 box of cheerios in the shopping cart.

Davd Soul