• pancake@lemmygrad.ml
    0·
    8 months ago

    Curious how long they’ll be able to go on with the narrative that inflation will go down and interest rates will be reduced soon…

    • catchy_name@feddit.itEnglish
      0·
      8 months ago

      Seeing the CPI plotted over time helps to get a clearer feel for how it is changing:

      https://www.bls.gov/charts/consumer-price-index/consumer-price-index-by-category-line-chart.htm

      Based on that chart, things don’t look as dire as the cited “~20% since 2020” stat. Yeah, we’re all still feeling the effect but it seems that the rate has dropped into normal-ish territory. Now the questions are “How close are businesses to really feeling the hurt of the lack of cheap borrowing?” and “If/when we drop interest rates how much immediate effect will that have on inflation? How much can we drop it without really spiking inflation again?”