Chart of the Day: Still No Inflation!

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Dylan Matthews points out today that despite the predictions of the doomsayers, inflation continues to be nearly nonexistent. According to the BLS, the headline CPI figure stood at zero in July, and core inflation (which excludes food and energy) was at 0.1%.

As it turns out, that zero number is a statistical artifact. The real number is 0.045%, which rounds down to zero. But if you multiply by 12 to get the annualized figure, it’s still a very, very modest 0.5%. The chart below shows monthly inflation for 2012, annualized for both headline CPI and core inflation.

So why is the Fed still so concerned about inflation, when it’s so well controlled and unemployment is still so high? It is a mystery.

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DEMOCRACY DOES NOT EXIST...

without free and fair elections, a vigorous free press, and engaged citizens to reclaim power from those who abuse it.

In this election year unlike any other—against a backdrop of a pandemic, an economic crisis, racial reckoning, and so much daily crazy—Mother Jones' journalism is driven by one simple question: Will America will move closer to, or further from, justice and equity in the years to come?

If you're able to, please join us in this mission with a donation today. Our reporting right now is focused on voting rights and election security, corruption, disinformation, racial and gender equity, and the climate crisis. We can’t do it without the support of readers like you, and we need to give it everything we've got between now and November. Thank you.

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