8 votes

US consumer prices rose 8.5% in July, less than expected as inflation pressures ease a bit

5 comments

  1. [5]
    stu2b50
    Link
    CPI 8.5% YoY, below expectations. CPI 0% MoM, which is generally spurring optimism. Hard to tell how it will affect specific markets since much will depend on how the Fed takes the news. In...

    CPI 8.5% YoY, below expectations.

    CPI 0% MoM, which is generally spurring optimism.

    Hard to tell how it will affect specific markets since much will depend on how the Fed takes the news. In combinations with the strong jobs report, they could take it as a sign that a) the rates hikes are working b) the economy did not miss a beat with current interest rates so, more and higher rate hikes!

    On the other hand, they could see it as a sign to ease off the pedal.

    Real wages increased by 0.5%, which is nice to see.

    7 votes
    1. skybrian
      Link Parent
      I don't understand the "real wages" number. It's a monthly change, but year-over-year? Is it seasonally adjusted? I see it in the article, but where do they get it from?

      I don't understand the "real wages" number. It's a monthly change, but year-over-year? Is it seasonally adjusted? I see it in the article, but where do they get it from?

      2 votes
    2. [3]
      MimicSquid
      Link Parent
      Any gain in real wages is good, but if real wages rose 0.5%, and CPI rose 8.5%, for whom is that really a win?

      Any gain in real wages is good, but if real wages rose 0.5%, and CPI rose 8.5%, for whom is that really a win?

      1. [2]
        stu2b50
        Link Parent
        Well, the people that had their wages increase by 0.5 in real dollars? The CPI isn’t really relevant since real wage growth already factors in the CPI - hence the “real” label as opposed to...

        Well, the people that had their wages increase by 0.5 in real dollars? The CPI isn’t really relevant since real wage growth already factors in the CPI - hence the “real” label as opposed to nominal wage growth.

        7 votes
        1. MimicSquid
          Link Parent
          Ah, thank you. I didn't realize that was what that meant.

          Ah, thank you. I didn't realize that was what that meant.

          2 votes