The latest Bureau of Labor Statistics (BLS) report released on Wednesday showed inflation eased in June but remains high after the Federal Reserve’s suspension of rate hikes.
The consumer price index (CPI), which broadly measures the prices of daily commodities such as energy and food, rose 3.0% in June compared with 4.0% in May, according to the BLS. Core CPI, which excludes energy and food, remained at a high level, rising 4.8% in June from a year-on-year increase of 5.3% in May. (Inflation is trending down, but still well above the Fed’s target.)
“Inflation after June 2022 is about 50% faster than the average inflation rate for the period from the Great Recession to the Biden administration,” said E.J. Antoni, Research Fellow at the Heritage Foundation Grover M. Herman Center says. He told the Federal Budget, Daily Caller News Foundation. “Prices continue to rise at an increasing rate as the government is still spending, borrowing and creating excess money.”
While short-term inflation expectations continue to trend downward, they are rising over the medium to long term. And all three appear to converge around 3.5% – the Fed has lost control of locking in at 2%. On the other hand, people believe that earnings growth below inflation expectations will make them poorer. pic.twitter.com/rR3K49NcYE
— EJ Antoni (@RealEJAntoni) July 10, 2023
The change in inflation follows the Federal Reserve’s first interest rate moratorium since March 2022. The Fed chose to keep rates in the range of 5% to 5.25% at its June meeting, but expects more rate hikes in the future. A year to reach the 2% inflation target.
The inflation announcement comes after jobs data showed unexpectedly low job growth, with June hiring below expectations of 225,000 and May adding 30,000. Only an increase of 209,000 was reported, well below 9,000. The report includes data on the number of part-time workers added, showing that 452,000 part-time jobs were added in June due to economic reasons, with many Americans leaving full-time jobs. Indicates that time cannot hire workers.
All content produced by the Daily Caller News Foundation, an independent, non-partisan news distribution service, is available free of charge to legitimate news publishers capable of serving large audiences. All reissues must include our company logo, press byline, and DCNF affiliation. If you have any questions about our guidelines or partnering with us, please contact us at licensing@dailycallernewsfoundation.org.
