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  • Core Inflation Gauges Are Falling in US and Euro Zone

    From bnnbloomberg.ca

    Policymakers on each side of the Atlantic are likely to take comfort this week from a slowdown taking hold in key underlying measures of consumer-price growth. In the US, the annual core metric that strips out food and energy from the Federal Reserve’s preferred inflation measure may have fallen below 4% in August for the first time in nearly two years. Meanwhile the euro region’s own annual gauge of underlying price growth is expected to have slowed to 4.8% in September — a 12-month low. Such coinciding evidence would reassure officials from the Fed and the European Central Bank after a week when each signaled ... (full story)

Meaningless to the average citizen. Food and energy are a huge part of every family's budget. Rent/mortgages up up up. Nothing I buy is cheaper than it was a year ago.

Bloomberg is just another tentacle of the left
"Pride always comes before destruction...." -Proverbs 16:18
Quoting Expo33
Meaningless to the average citizen. Food and energy are a huge part of every family's budget. Rent/mortgages up up up. Nothing I buy is cheaper than it was a year ago. Bloomberg is just another tentacle of the left
Thats a wrong understanding of lower inflation. Lower inflation means that prices are growing but at a slower (normal) pace. So prices as they were are gone but it has stabilized.
Quoting Banditten
{quote} Thats a wrong understanding of lower inflation. Lower inflation means that prices are growing but at a slower (normal) pace. So prices as they were are gone but it has stabilized.
Unfortunately 99% of population cannot grasp the fact that prices are going up but at a slower rate and when inflation increases more than wages that's when problems occur which is what is happening right now, looking at FED dot plot that was released none are in unison which means insane amount of uncertainty on the future of the economy.

I can see growth and tech stocks dropping over the next couple of months and commodities & stocks to rise as smart money will continue to rotate funds leaving retail out to dry
  •  Guest
  • | IP XX.XXX.3.90
It’s too bad central banks never admit they were the ones creating out of control inflation. Just look at a chart of the balance sheets, when you print endless money to buy endless government debt, that creates inflation by definition. They created this problem and they just keep trying to thread a needle. We needed a Volker Fed two years ago, inflation would have been stopped and we could be on the road to recovery. Now we have never ending uncertainty. Sometimes you have to take your medicine no matter how bad it tastes.
Government short down is looming in USA.
https://news.yahoo.com/pay-millions-...l&uh_test=0_00
Quoting Banditten
{quote} Thats a wrong understanding of lower inflation. Lower inflation means that prices are growing but at a slower (normal) pace. So prices as they were are gone but it has stabilized.
My electric/gas company just raised rates 18%.

Gas for my car went from $4/gallon to $5.30/gallon in the last 3 months.(32%)

Trust me I understand the inflation numbers and what they represent

It's like saying hey there's a murderer who just stabbed me 35 times in 60 seconds but the good news is that he's now only stabbing me 20 times per minute.
"Pride always comes before destruction...." -Proverbs 16:18
  •  Guest
  • | IP XXXX:d364:fbab
True. Your purchasing power drops when pay increase % is lower than inflation rate. That doesn't make what #Expo33 said is wrong. While the FED is addressing the problem at a macro level, a problem they created in the first place, people are suffering the impact most in the necessities like food and energy. Trying to engineer a soft landing is dragging the problem on for years. Those in FED never learn. Just take your medicine, painful as it may be, it will be short. When its done, stimulate economy to get things growing again. It's a cycle and tinkering with it does not mean you can avoid the downturn.
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  •  Guest
  • | IP XX.XXX.96.86
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  • Story Stats
  • Posted: Sep 23, 2023 11:30pm
  • Submitted by:
     Newsstand
    Category: Fundamental Analysis
    Comments: 7  /  Views: 4,131