Wetin dey happen for Washington, D.C.? As dem dey splash the July inflation report, e don show say consumer prices don rise by 2.7% annually. But make we take am easy: dis number dey less than wetin economist dem expect – about 2.8% talk no be small.
According to Bureau of Labor Statistics (BLS) wey drop dis report on Tuesday, prices don increase by 0.2% for July alone. (E no too bad, abi?) Dem say if we no include food and energy, core inflation don rise by 0.3% for di month and 3.1% for di year. Na who talk say inflation no dey chop our money like bush meat for pepper soup? Dem dey watch core inflation because e fit show better long-term trend.
So, wetin cause all dis wahala? Na shelter costs wey don rise by 0.2% plus transportation and medical care wey increase by 0.8% wey dey drive di show. Food prices flat, while energy don fall by 1.1%. Dem talk say prices for new cars no change, but as for used cars, dem gree rise by 0.5% – Omo, who dey use used car no sabi say dem dey lead charge?
Investors don notice say Federal Reserve fit cut interest rates as dem dey look at di numbers sharp-sharp. (E be like say dem dey plan some party in September!) Tariff issues don dey affect plenty price segments. For example, furniture prices rise slightly, but dem say clothes no change much. But wetin we go expect for canned fruits wey dey come from abroad? E better make we dey prepare for small wahala.
E still dey gather steam for economy, as Fed officials dey watch inflation with keen eye. Ellen Zentner wey be chief economic strategist for Morgan Stanley talk say inflation dey rise, but e no reach level wey some people dey panic about. Dem say dis numbers fit allow Fed focus on di labor market wahala.
One gbege wey don dey happen na say BLS don face plenty wahala from Trump side wey dey carry dem go court. Dem dey criticize di Bureau wit claims of political bias, especially after weak job numbers earlier this month. Wetin you go expect when Trump dey talk? E don sack di BLS commissioner, and now e dey plan to nominate E.J. Antoni to take over. (As wahala dey plenty, na wetin political bias go do am?).
Meanwhile, dey say inflation-adjusted hourly earnings don rise just 0.1% for di month, but na only 1.2% yearly gain – so you see, money dey remain small for pocket. Dem don talk say food alone dey suffer too, as food prices wey dey for home don rise by 2.2% yearly.
Dis inflation report no just be story matter, e get weight. E gree make sense because inflation dey affect all of us, especially di people wey dey struggle for lower income side. Even those wey sabi save small, dem still dey feel di heat. For market, traders don increase di odds for a rate cut next month sharply. Na serious matter.
As we dey enter September, make we dey watch how di Fed go respond to di next data. Di journey no dey easy, but at least we dey here to gist about am (grab your palm wine!).
