This week in Bidenomics: Fooled by gas prices
America’s mood is improving, as gas prices decline. Pump prices have fallen by $1.30 per gallon since June, to a somewhat manageable national average of $3.70. Consumer confidence fell during the first half of the year, as gas prices were soaring, but confidence has improved since July. There’s no better indication that inflation is on the run!
Except, it’s not. Economists and investors sowing lately, there is a definitive decline in the pace of price hikes.
Whoops. The annual inflation rate only dropped by two-tenths of a percentage point from July to August, to 8.3%. Many economists thought inflation might dip below 8%. The drop in gas prices did bring inflation down, but barely. Other types of inflation remain alarmingly high. Grocery prices are up 14%, year-over-year. Cars, 10%. Rent, 7%. Incomes, meanwhile, are only growing by about 5%. Ordinary people are falling behind.
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