Inflation Continues to Plunge Thanks to Low Gas Prices

The Bureau of Labor Statistics reports that the Consumer Price Index declined 0.8 percent in April, mostly thanks to an oil glut that has caused an 18 percent drop in energy prices:

Economists typically prefer to look at the core inflation rate, which excludes food and energy because they’re too susceptible to outside forces that have nothing to do with actual inflationary pressures (bad harvests, oil embargoes, etc.). The core inflation rate in April ran at 1.4 percent.

That said, ordinary people should pay attention to the headline inflation rate because that’s what affects their actual daily lives. And while this is, I admit, a pretty small bit of good news in the middle of a global pandemic that’s being mismanaged in horrific proportions, it is a tiny bit of good news. These days, I’ll take what I can get.

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DEMOCRACY DOES NOT EXIST...

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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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