(The Guardian) US inflation showed signs of cooling in October
America’s white-hot inflation was expected to be one of the most potent trends influencing voters in Tuesday’s elections, but government data released just minutes ago indicates it may have started cooling.
The Bureau of Labor Statistics reports consumer prices rose 7.7% in October compared to the same month last year, down from the 8.2% rate seen in September. On a monthly basis, prices rose 0.4%, the same rate as in September.
Inflation has climbed to levels not seen for four decades over the course of the past year, souring voters on Joe Biden’s presidency and making Democrats nationwide fear they’d be booted from office in the 8 November midterms. While all the votes haven’t been counted yet, Biden allies appear to have done better than expected on Tuesday, a sign that their arguments about abortion and Republicans’ threat to democracy may have overcome voters’ economic anxieties. However consumers are still paying much more for household staples than they were a year ago. Food prices are up 10.9% compared to October 2021, and gasoline 17.5%, for example.
The bigger question is if this latest report is a sign that the bout of inflation that accompanied the economy’s recovery from the Covid-19 pandemic in 2020 is finally easing for good. There are an array of opinions out there about this, but here are the views of University of Michigan economics professor Justin Wolfers...
America’s white-hot inflation was expected to be one of the most potent trends influencing voters in Tuesday’s elections, but government data released just minutes ago indicates it may have started cooling.
The Bureau of Labor Statistics reports consumer prices rose 7.7% in October compared to the same month last year, down from the 8.2% rate seen in September. On a monthly basis, prices rose 0.4%, the same rate as in September.
Inflation has climbed to levels not seen for four decades over the course of the past year, souring voters on Joe Biden’s presidency and making Democrats nationwide fear they’d be booted from office in the 8 November midterms. While all the votes haven’t been counted yet, Biden allies appear to have done better than expected on Tuesday, a sign that their arguments about abortion and Republicans’ threat to democracy may have overcome voters’ economic anxieties. However consumers are still paying much more for household staples than they were a year ago. Food prices are up 10.9% compared to October 2021, and gasoline 17.5%, for example.
The bigger question is if this latest report is a sign that the bout of inflation that accompanied the economy’s recovery from the Covid-19 pandemic in 2020 is finally easing for good. There are an array of opinions out there about this, but here are the views of University of Michigan economics professor Justin Wolfers...
