June, July, & August 2024 CPI & PPI not what Fed Reserve Needs for rate policy change

I need a better explanation and an example of how the math works. I'm calling BS on anything originating in the Biden/Harris White House.

Tell me why this is not correct:

Core CPI is 3.2% for a second consecutive month. Housing went up in August .5% according to the released report.

Why isn't housing .5% / 3.2% = 15.63% of the August 2024 Core CPI? I don't see how it can be reasonably said that housing is 45% of the Core CPI August 2024 number. It looks to me that Core CPI is 2.7% excluding housing. However, excluding housing is not what is excluded from the Core CPI. Food and energy are excluded.

 

yours and te wh numbers don't work. try again as i'm calling bs on the wh and you.

 

lol! there are charts that does this in the release, no math needed. the smart aleck you chose to be was as unnecessary as your poor explanation. still, importance doesn't change the cpi or the core cpi.

 

Thanks for making what you were talking about so clear for a dummy like me. However, I'm still confused as to your original comment from your post on this on the previous page:

"45% of core CPI is housing. If the fed is relying on that given current circumstances they are dumber than I thought."

Housing is the largest component of the CPI and Core CPI. It just went up .5 in August. Why is it the right thing to feed upward pressure on inflation by cutting rates into a still rising housing price market?

I know I'm dumb so draw pictures for me to understand. Thanks.

 

Have to question the validity of information as Disney has raised their prices across the board. Hulu + Live TV is going up $6.00 monthly starting on October 17, $76.99 monthly to $82.99.

If the globe outside of the US is experiencing a slump, gas going down makes sense. However, I think OPEC has announced a reduction in production to combat the lower prices.

McDonald's? I wouldn't eat at McDonalds if they offered the value meal for one day at $1.00.

Online grocery shopping is still a big thing since the pandemic? My wife will be surprised to see she can buy lower grocery prices anywhere since Harrisflation kicked in.

 

Adding the August 2024 Producer Price Index:

Producer Price Index News Release summary - 2024 M08 Results (bls.gov)

U.S. Producer Prices Rise 0.2% In August, Slightly More Than Expected | Markets Insider (businessinsider.com)

I'll be disappointed in the Fed if they change their interest rate policy. As Business Insider said:

"Core CPI surprised yesterday, and PPI came in hotter than forecast today, but we don't think we're at the start of a renewed rise in inflation," said Nationwide Financial Markets Economist Oren Klachkin.

"Rather, we think they are evidence of a bumpy path to 2%," he added. "A cooling economy and deflating labor market should dampen price pressures going forward."

PPI is up more than expected. Core CPI is still high at 3.2% with housing going up .5% in August. Not thinking we have renewed inflation could change rather quickly to we see renewed inflation if the Fed changes rate policy. It's not necessary and not worth the risk of increased inflation to put out an unemployment fire, down from 4.3% to 4.2% in August, that does not exist. It's still too early to say the US is on a sustained path to 2.0%. Nothing in August confirms it.

Let's not forget the Fed's preferred index, the Core PCE:

Personal Income and Outlays, July 2024 | U.S. Bureau of Economic Analysis (BEA)

PCE 2.5%
Core PCE 2.6%

Core PCE is at 2.6% for 3 consecutive months. Contrary to what Business Insider says, that is consistent well above 2.0% and does not indicate a bumpy ride down to 2.0%.

Fed don't change your rate policy as it's too soon.

 

Well, the strong possibility that she is and has been running the country, would account for the US anti-Israel and antisemitism in the Harris Administration, makes the change from Bidenflation to Harrisflation mandatory.