The Bureau of Labor Statistics (BLS) released the July inflation data today [RELEASE HERE]. Overall, inflation remains low and stable with a July outcome of 0.2 percent, 2.7 percent year over year.
The prices for highly consumable goods like food at home are declining, meanwhile the prices of long-term durable goods are ticking up. Put another way, the prices of the stuff we export are lower, the prices of the imported durable goods are a little higher. Put them together and the aggregate inflation is stable.
There are regional aspects to this data. Particularly in the blue states. Energy costs remain stubbornly higher in some blue states due to increasing tax loads on such items. In NJ the state’s Public Utility commission recently granted increases of !7% to 20%. NJ remains caught in the climate change insanity with goals like making urban areas in NJ carbon free within ten years.
If this is pursued without recognition of the damage it is doing, I would expect residents in NJ to have make decisions like how cold due they want the homes to be during the winter or how hot in the summer.
As far as the rest of the country is concerned, inflation should remain stable as the baseline tariffs and reciprocal tariff rates begin solidifying. The largest portion of the tariff rates will be absorbed by the producers. In some countries the governments (think China) will underpin companies so that they can continue to maintain market share. The pass-through rate of the tariffs will be far less than the rate that has been advertised.
Highly consumable goods like food and energy products should remain stable with downward price pressure as the cost of production drops.
The days of 5%, 7% 9% inflation appear to be behind us. The vaunted liberal media has been wrong once again about the effects of PDJT’s tariffs program.