Rebel Capitalist News New CPI Data Just Released (What You Need To Know)
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May 13, 2025 Dive into the latest Consumer Price Index data, revealing surprising trends in inflation that's lower than expected. Explore how recent tariff shifts are affecting vehicle prices and overall consumer demand. The discussion raises concerns about wage stagnation and highlights the broader implications for the economy. Join the conversation for insights into financial literacy and networking opportunities.
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Stagflation Is Not The Base Case
- Stagflation is unlikely because while some prices may rise, others fall if nominal wages don't increase.
- Sustained consumer price inflation acceleration is very difficult without wage growth in a slowing economy.
Inflation Trend Down Despite Tariffs
- Although tariffs exist, the inflation trend is down, helped by falling energy and food prices.
- CPI without tariffs would likely be close to or below 2%, reflecting the true inflation trend.
Tariffs Raise Prices But Don't Spike CPI
- The prices of tariffed goods increased but the overall CPI did not spike as expected.
- The Fed bases policy on the overall basket, so tariffs alone do not justify rate pauses.