Economy will not fall into a recession- Federal Inflation Data shows
Inflation is going down- Federal Inflation Data shows
Federal Inflation Data – no signs of recession
In a recent published article of TMJ4, about Fed inflation data – it shows that the inflation is down in United States. But how could we identify if the inflation is down after the pandemic hits the country. When pandemic hits the world – the prices for many goods and services started to rise giving hardship to all of the consumers including Americans.
Last week, to back up their claims that the inflation is down, Fed shows a report of Personal Consumption Expenditures Price Index rose 3% in June. The Personal Consumption Expenditures Price Index tracks the changing prices of goods, and how people spend when prices are high. Given the numbers showing in the index, it is safe to believe that the inflation is down.
A professor of economics at Metropolitan State University of Denver, Glenn Furton says the latest inflation numbers from the Fed showing that the inflation is down gives encouragement to all people particularly the economists.
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Furton explains that knowing that the inflation is down they felt more confident. He appreciated Fed’s effort in maintaining inflation rate. Furton added, now that the inflation is down, it made a lot of people confused but in a positive way.
Aside from the Fed’s report about inflation is down, there is a separate report from the Labor Department about the wages and salaries that grew slowly than the usual flow from April to June 2023. This shows that the employers felt less pressure to increase the salary. And it’s one of a strong indicator that inflation is down over time.
Furton says, like any assessment from economists, Federal Inflation Data that shows inflation is down is just an interpretation of Fed’s report and not a prediction. He also added that Fed might be worried about the inflation is down and easing interest rates too soon because there’s no way of saying when those might start to get rolled back.
Read Also:Inflation is finally slowing down, but consumers are still feeling the sting of high prices
