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Inflation Is At 0%

Cheerful Charlie

Cheerful Charlie

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Inflation has seemingly been tamed. Now if the GOP will please not screw this up.

.....
Economists and investors are cheering over news the consumer price index shows inflation was zero for the month of October, meaning prices on average did not rise.

"Inflation's receding, baby," exclaimed professor of economics and Brookngs senior fellow Justin Wolfers. "Headline inflation was literally zero -- on average, prices were the same in October as September. Over the year, headline inflation is 3.2%, beating expectations of 3.3%."
......

www.rawstory.com

‘Inflation was literally zero’: Economists thrilled with latest report

Economists and investors are cheering over news the consumer price index shows inflation was zero for the month of October, meaning prices on average did not rise."Inflation's receding, baby," exclaimed professor of economics and Brookngs senior fellow Justin Wolfers. "Headline inflation was...
www.rawstory.com www.rawstory.com
 
Fuel prices have gone down significantly since the beginning of October around here.
 
July 5, 2023. National Review

.....
Case in point: In an effort to avoid responsibility for a still-surging inflation rate while claiming credit for slowing it, Biden’s economic team recently posted a video boldly stating, “Here Are the Facts.” The first of these purported facts is, “Under the Biden Harris Administration Inflation Has Fallen.” Unfortunately, that’s just not true.
.......

Now it is in fact true. The right has been barking about inflation under Biden repeatedly. Ignoring Big Business's greedflation. 3.2% inflation for the year is not bad.
 
Tigers! said:
You really think inflation will not return?
One swallow does not a summer make and all that.
Click to expand...

If inflation goes to 1.2% or such next month, it is not like the 7% inflation we had in Biden's first year. Obama took Bush's disaster, turned it around and gave us the longest economic expansion since WW2. Trump was handed a healthy economy. Then Covid hit us. And world wide inflation. Neither Biden's fault. Under Trump, spending rose also. Fighting Covid.
 
ZiprHead said:
Fuel prices have gone down significantly since the beginning of October around here.
Click to expand...
Yupp. Fuel and food tend to be volatile, which is why they are excluded from the core CPI. That makes it a more stable estimator of inflation. I assume Rawstory is just using regular CPI and gas prices going down plays a big role in the supposedly 0% inflation.

Btw, why are fuel prices going down? One big reason:
The U.S. Just Recorded Its Highest Oil Production Month In History

And that in turn is due to fracking, which many 2020 Democratic presidential candidates, including the sitting vice president, wanted to ban.
Where Democrats stand: Would you ban fracking?
As do many in Congress, esp. the so-called Squad that tends to be popular around here.
Just some food for thought.
 
Patooka said:
Fuck me sideways with a rusty railspike I yearn for the day when people fucking get it into their fucking skulls that oil production isn't the issue - it's the refining.
Click to expand...
Exactly. It is doubtful that an increase in oil production in October would have any effect on the retail prices of gasoline in October.
 
Tigers! said:
You really think inflation will not return?
One swallow does not a summer make and all that.
Click to expand...
The reason for the inflation we suffered was supply chain issues caused by Covid-19 and Covid-19 recovery. That is all past tense now. So any new inflation would generally be driven by interest rates being too low, however, other unique things could pop up.

So in general, yes, inflation, as we knew it in the last couple of years is done, because what was driving it, has now cleared out of the system. Future economic conditions will drive any future issues regarding inflation. The America economy isn't in bad condition, but it isn't booming. Things are different, and people don't like different. So Biden is unfairly taking heat for a poor economy that actually isn't poor, but rather different.
 
Patooka said:
Fuck me sideways with a rusty railspike I yearn for the day when people fucking get it into their fucking skulls that oil production isn't the issue - it's the refining.
Click to expand...
Well, oil production can be an issue. The gasoline prices dropped recently due to the refining "issue". Which is how oil was able to skyrocket (5% or so) while gasoline prices actually dropped.
 
I think most of the reason for recent inflation (shown by many economic indicators and research) was due to corporate profit taking, which they blamed on supply chain/COVID issues. Some small amount of the initial inflation was due to the disruptions, but when large corps discovered they could blame that, they really jacked up their prices, and short term profits really soared.

So most of the inflation was simple corporate greed. Welcome to capitalism.
 
Many people just haven’t experienced inflation like this. Three years of 6-7%. You have to go back to the Carter administration for anything this bad. Folks are use to grocery prices going up just enough to grumble about, not outright bitch about. So young people are unfamiliar with this and old people associate poor old Joe with Jimmy Carter level inflation.
Even if inflation is quelled, it will hang over Biden for awhile. I expect it will be some time before people get use to this new normal.
 
TV and credit cards said:
Many people just haven’t experienced inflation like this. Three years of 6-7%. You have to go back to the Carter administration for anything this bad. Folks are use to grocery prices going up just enough to grumble about, not outright bitch about. So young people are unfamiliar with this and old people associate poor old Joe with Jimmy Carter level inflation.
Even if inflation is quelled, it will hang over Biden for awhile. I expect it will be some time before people get use to this new normal.
Click to expand...
Yup. I still get blown away every time I do my big every-two-weeks grocery shopping trip. Rarely am I pleasantly surprised these days when it comes to food prices.

I wonder if Biden is regretting calling his economic program, "Bidenomics".
 
thebeave said:
TV and credit cards said:
Many people just haven’t experienced inflation like this. Three years of 6-7%. You have to go back to the Carter administration for anything this bad. Folks are use to grocery prices going up just enough to grumble about, not outright bitch about. So young people are unfamiliar with this and old people associate poor old Joe with Jimmy Carter level inflation.
Even if inflation is quelled, it will hang over Biden for awhile. I expect it will be some time before people get use to this new normal.
Click to expand...
Yup. I still get blown away every time I do my big every-two-weeks grocery shopping trip. Rarely am I pleasantly surprised these days when it comes to food prices.

I wonder if Biden is regretting calling his economic program, "Bidenomics".
Click to expand...
I think that is what most people associate Bidenomics with, their monthly budget. And why wouldn't they? If team Biden doesn't come out hammering home what it's really about or people don't care what it's about, they will make that assumption.

The worst of it should be complaints that not only your primary route but your secondary route home is blocked by infrastructure projects.
That everyone who wants a job has a job. But the focus will always be, yeah but I ain't making enough. No one ever is, sweetheart.

We needed an educational spendaplaooza in place to get things really humming. Instead we have a bunch of high skill jobs and high school graduates to try and fill them.
 
Patooka said:
Fuck me sideways with a rusty railspike I yearn for the day when people fucking get it into their fucking skulls that oil production isn't the issue - it's the refining.
Click to expand...
Refining capacity plays a role as well, especially when there are bottlenecks, like after a hurricane.
However, oil supply and demand play a major role too. And without fracking, US would be making <5 Mbbl/d instead of 12 >Mbbl/d.
 
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