A pal on Fb writes:
Many within the MSM (mainstream media) will deceive your face. Be discerning. Costs rose 8.5% yr over yr in July. That’s NOT a big slowdown. When you solely misplaced 1/twelfth of your cash since final July, that actually just isn’t an enchancment in circumstance after shedding 1/eleventh of your cash since final June. That’s what these malefactors are attempting to argue right here.
I received’t point out the pal’s title: my coverage after I quote from FB is to by no means title the individual I’m quoting with out first getting his/her consent.
However really, if the information say that you simply misplaced 1/12 of [the value of] your cash since July fairly than the 1/11 that you simply misplaced from June 2021 to June 2022, that’s fairly probably an enormous enchancment. It relies upon crucially in your baseline.
Right here’s the primary paragraph of the BLS’s August 10 report on the newest inflation numbers:
The Client Worth Index for All City Customers (CPI-U) was unchanged in July on a seasonally adjusted foundation after rising 1.3 p.c in June, the U.S. Bureau of Labor Statistics reported right now. Over the past 12 months, the all gadgets index elevated 8.5 p.c earlier than seasonal adjustment.
In case your baseline is, because it appears to be for most individuals, that inflation will proceed at a excessive stage, then going from 1.3 p.c in a month (June) to 0 p.c in a month (July) is a big enchancment.
In case your baseline is the buying energy of your greenback 13 months in the past, then discovering out that it has misplaced no further buying energy within the thirteenth month just isn’t an enchancment in any respect.
What is evident, although, until the information for July are up to date to replicate an precise improve within the CPI in July, is that his assertion, “That’s NOT a big slowdown” is wrong.
Replace
Right here’s an instance of somebody who doesn’t get it:
While you misplaced your final sport 91-0 then bounced again to lose your subsequent sport 85-0 https://t.co/jm4ErnWlPA
— David Burge (@iowahawkblog) August 10, 2022
