Inflation slowed in February, driven in part by lower energy costs, according to new federal data released this week by the U.S. Bureau of Labor Statistics.
The latest Consumer Price Index report shows inflation rose by just 0.2% last month, contributing to a 2.8% increase over the past year. This marks a slight decrease from January’s annual inflation rate of 3% and indicates a potential easing of price pressures on American consumers.
Lower energy prices align with a core value of President Donald Trump’s campaign to reduce costs for American families. However, some are skeptical since global oil markets tend to fluctuate, and tariffs will play a role in consumer costs.
Despite the drop in energy prices, overall inflation is still above the Federal Reserve’s 2% target.
STOCK MARKET AND 401Ks LOWER THAN EXPECTED: REPORT
Do you really think Biden’s mess can be reversed in 100 days? It’s like a runaway train. First you must get it stopped, repair it, then you can make progress again.
Stocks go up, stocks go down.
Normal fluctuation is… normal.
The S&P 500 dropped over the last week to the level it was at on September 12, 2004. ZOMG! The HORROR!
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I may have to push back my retirement date by zero days.
Damn typo!
S&P dropped to Sept. 2024 level.
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Proofreading helps
The Dow Jones Industrial Average (^DJI) was up about 0.2% after reversing course earlier in the session. Meanwhile, the S&P 500 (^GSPC) was up about 0.9% while the Nasdaq Composite (^IXIC) gained roughly 1.5%: Report. Source: Actual news, not Whidbey news.
DJIA close 221 Jan 2025: 44025.81
DJIA close today: 41350.93
41350 is less than 44025.
Inflation is based on supply and demand. Consumers are 70% of the economy and spending/consumer confidence are down. So the good inflation news could be a slowing economy. The first quarter GDP numbers will be out in April. There is a reason Bessent wants to change how GDP is calculated. Everything the R’s are doing is to get another huge tax break for wealthy taxpayers
Increased money supply and government spending cause inflation, but you already knew that.
A 2.8% inflation annual means that your money will lose half its value in a mere 25 years. The Fed’s inflation target of 2% is 2% too high. The target rate should 0% to provide a stable dollar for a long term store of value.
Harvard professor Benjamin M Friedman (no relation to Milton) wrote “There is the arbitrariness surrounding the current 2 percent target. In retrospect, the paucity of serious empirical research underlying the identification of the 2 percent norm, now quite some time back, is a professional embarrassment.”
The government is the biggest beneficiary of inflation as it erodes the real value of its debt. The last thing we need is to provide an incentive for the government to inflate. Inflation also pushes everyone into a higher tax bracket. If Congress wants to raise taxes, they should do it openly and honestly so the taxpayers can see what they are doing and vote accordingly.
This is why a DOGE stimulus “payment” would be catastrophic for the economy. Savings should go toward the debt as inflation will eventually give that money away again through higher prices if a big check is sent to all Americans. The 3 stimulus “payments” (2 by Trump and 1 by Biden) prove that.