Thorn in economy side-Inflation

[Zoe]

https://money.usnews.com/money/personal-finance/articles/consumers-faced-higher-inflation-in-august-as-housing-groceries-spike

"Consumer prices rose more than expected in August driven by higher costs for housing and groceries, the Bureau of Labor Statistics said on Thursday in the last inflation report before the Federal Reserve’s meeting next week.
The consumer price index increased by 0.4% for the month, above the 0.3% forecast, bringing the annual rate to 2.9%, in line with estimates. In July, the CPI rose by 0.2% with the annual rate at 2.7%.
In particular, prices for housing increased 0.4% in August, while the cost of groceries went up by 0.6%. The increase in prices of necessities means consumers will continue to be squeezed as the pace of wage increases slows.
The August CPI report follows the producer price index for August released on Wednesday showing a surprise drop in inflation at the wholesale level. That had raised some hope that inflation was cooling, but the CPI data may throw some cold water on that notion."

I fully expect and predicted it would take til Christmas for Tariffs to show true colors. I hold that opinion still and I also predict next year will be worse on inflation. Mortgage rates have fell a little but pricing on housing has not dropped much if at all. Prices on housing are probably stagnant/slightly rising/or slightly falling in many areas.

Groceries and consumer items are fueling inflation.

"The Fed now appears more concerned about the sharp slowdown in the labor market than it is over inflation that remains above its 2% annual target. The Labor Department last week said that a meager 22,000 jobs were created in August and on Tuesday issued revisions to the job count for the period March 2024 to March 2025 that said 911,000 fewer jobs were added than originally thought."

 

[Tom D]

Let's not forget government inflation added to your check.
(The Center Square) - California is scrambling to avoid an automatic 3.7% payroll tax increase to cover its projected $23.2 billion debt to the federal government for COVID-era unemployment benefits payouts, according to information uncovered through a public records request by The Center Square.

 

[Charles West]

Zoe seems to think our inflation is due to supply side policies, yet doesn't think expanding the money supply is a factor. The truth is inflation will continue to ripple through the economy for some time, current supply side fiscal policy will help dampen the effects but not eliminate them entirely.

 

[J Grant]

Trump's flip-flopping on Tariffs, his rapid dismantling of federal agencies, combined with his failure to make peace deals , the rising prices, coupled with rising unemployment, make people nervous, and it is impossible for companies to plan. The economy and the housing market are stuck, frozen. I read the term for it is stagflation. The small interest rate cut appears to have done nothing for the housing market. If people are afraid for their jobs and what the future holds, they are not going to buy.

His deporations are not helping the economy; they are harming it. Deportations were needed; phasing them in with a reasonable path to citizenship would have made more sense. These mass deportations are wiping out a segment of consumer demand; the undocumented were not just workers, they were customers. Businesses are left stranded to fill positions and have to raise prices. People im America are not used to living in a police state, with troops on the streets and detainee seekers sprouting up and a POTUS constantly stoking division among citizens. Dismantling institutions and debunking science and turning America back 50 years spooks people - we have never had this happen in the last century. It promotes an atmosphere of fear, not one of optimism or confidence.

 

[Dublin ohio]

These mass deportations are wiping out a segment of consumer demand; the undocumented were not just workers, they were customers.

And whose money do you think they are spending. Do you really think that all 10M+ that were let in during the last administration. are productive members of society. Let alone the millions that were already here. Did we suddenly create millions of low paying jobs in the last 4 years. Conservative estimates are that we spend over $150B a year on illegals. Do the math

 

[Charles West]

Trump's flip-flopping on Tariffs, his rapid dismantling of federal agencies, combined with his failure to make peace deals , the rising prices, coupled with rising unemployment, make people nervous, and it is impossible for companies to plan. The economy and the housing market are stuck, frozen. I read the term for it is stagflation. The small interest rate cut appears to have done nothing for the housing market. If people are afraid for their jobs and what the future holds, they are not going to buy.

His deporations are not helping the economy; they are harming it. Deportations were needed; phasing them in with a reasonable path to citizenship would have made more sense. These mass deportations are wiping out a segment of consumer demand; the undocumented were not just workers, they were customers. Businesses are left stranded to fill positions and have to raise prices. People im America are not used to living in a police state, with troops on the streets and detainee seekers sprouting up and a POTUS constantly stoking division among citizens. Dismantling institutions and debunking science and turning America back 50 years spooks people - we have never had this happen in the last century. It promotes an atmosphere of fear, not one of optimism or confidence.

Everything you just posted is wrong, and I don't understand how you arrive at the conclusions you do.

 

[J Grant]

Everything you just posted is wrong, and I don't understand how you arrive at the conclusions you do.

Look at the unemployment numbers, the RE market slowdown, Trump's tanking ratings, rising prices, and failed peace deals. It is all there to research with a few clicks. I wish it were different. Maybe things can turn around—but if he keeps up the revenge politics and dfirings and divisions tariffs, idk.

 

[J Grant]

AI Overview


The U.S. unemployment rate rose to 4.3% in August 2025, the highest level in nearly four years, as job growth slowed and the number of unemployed people increased. This shift from a strong job market to weakening conditions is characterized by a sharp decrease in non-farm payroll gains, a contraction in the labor market, a decline in the labor force participation rate, and an increase in the average duration of unemployment.

Key Indicators of a Weakening Labor Market

• Rising Unemployment Rate:
  The rate increased to 4.3% in August 2025, its highest point since October 2021.
  
  
• • Slowdown in Job Growth:
    Only 22,000 jobs were added in August, a fraction of the expected number, and June saw a net job loss for the first time since the pandemic.
    
  • Increase in the Unemployed:
    The number of unemployed individuals grew significantly, while the job-finding rate for those seeking work declined.
    
  • Longer Unemployment Spells:
    The average duration of joblessness has lengthened.
    
  • Shrinking Labor Force:
    The labor force has contracted, and the labor force participation rate has fallen to a new low.

 

[J Grant]

AI Overview

U.S. annual inflation rose to 2.9% in August 2025, an increase from 2.7% in the previous months, with rising costs for food, used cars, and energy driving the surge. The monthly CPI increased by 0.4%, and while core inflation remained steady, the overall trend shows prices are rising faster, further away from the Federal Reserve's 2% target. Key factors contributing to this rise include increased tariffs from the Trump administration, which are pushing up prices on imported goods, and continued pressure from shelter costs.

 

[J Grant]

• Poll shows 41% approval for Trump, down from 42% earlier
• 54% believe economy is on wrong track, up from previous months
• Trump's immigration policies receive highest approval at 42%

WASHINGTON, Sept 23 (Reuters) - President Donald Trump's approval ticked slightly lower in recent weeks as Americans worried about the health of the U.S. economy and the Republican's ability to contain rising prices, according to a new Reuters/Ipsos poll.
The three-day poll, which closed on Sunday, showed 41% of respondents approved of Trump's performance as president, down from 42% in a September 5-9 poll.