US inflation unexpectedly increases
https://www.bbc.com/news/articles/c3d57zm9m0poOpen linkView original on lemmy.world539
Comments161https://www.bbc.com/news/articles/c3d57zm9m0poOpen linkView original on lemmy.worldhttps://www.bbc.com/news/articles/c3d57zm9m0poOpen linkView original on lemmy.world
Unexpectedly?
I know I've seen this on several websites today. What was everyone expecting? The only think I can think of is the old trope that Republican administrations are better for the economy. I have coworkers who were basically expecting miracles once Trump got into office. Things are probably gonna be bad.
Correct me if I’m wrong, but don’t most (if not all) Republican administrations cause recessions or other damage to economies?
Every Republican presidential term in my lifetime has had a recession start. None of the Democratic ones have...
Regan; one started each term. First Bush had one in his term. Clinton had none in his 2 terms. Second Bush had a HUGE one each time (dot com and great recession). Obama had none in his 2 terms. trump had one in his first term (triggered by covid & shutdowns; which his (in)actions intensified...). Biden didn't have one (but; just barely... and only by the official definition [NBER]; he did have two negative real GDP quarters, so one could argue this point). Now we're starting trump's second term, so we'll see (it's pretty clear we'll have a recession within 2 years).
This isn't really debatable unless you ignore the evidence. Stock market and real GDP growth are overall way higher under Democrat presidents. One link for reference (but many more are available): https://link.springer.com/article/10.1007/s11127-021-00912-y
Same with budget deficits, Clinton even got surpluses...
Clinton repealed the Glass-Steagal Act, inflating a massive bubble (especially in Finance) which blew up in 2008.
If you're going to laud him for the positive effects of the bubble he inflated, then it's only fair to criticize him for the ultimate result of his bubble-pumping policies, which wiped out all the gains from the bubble.
He also had an affair
Did he have an affair? I hadn't heard about that... probably wasn't a big deal and people likely didn't blow it out of proportion.
obviously /s
That's up to him, his wife and his mistress.
I only care about his track record when it applies to the Economy.
Thanks for the link.
The 2008 Crash was the direct result of Clinton's repealing of the Glass-Steagal Act (with the full support from the Republicans, so I'm not actually excusing them).
In the process of pointing out just how bad the Republicans are for the Economy, let's not excuse the Democrats so much that it turns into whitewashing.
You are not wrong, I don't know where the other poster got their information, but Republicans almost always destroy the economy and the Democrats (kind of) fix it just in time to be blamed for the economy being bad.
The “trope” is public perception, not actual historical pattern. Every time a Republican president gets elected the exit polls are full of “economic concerns.” What that actually means is left to interpretation but so it goes.
It means they think minorities had too much money.
Historically the US economy generally performs better under Democratic administrations than Republican ones. I've read several articles and studies that show this. I'm on mobile and don't have the time to find them However polls show that Americans consistently have the opinion that Republican admins are better on economics. And this despite no matter how much evidence os presented.
Newsflash: Americans are fucking dumb. Mind numblying fucking dumb. Their stupidity triggered an overflow in the universe to where they've looped around and think everyone else is dumber than them.
I honestly believe America is the most ignorant as well as unhealthiest (obese/fat) nation in existence.
The ones who voted for Trump? To get their pony. And they'll keep shutting their eyes and plugging their ears waiting for their pony until they starve to death because everyone else has already emptied the dumpster of food.
Inflation has generally dropped significantly in most developed countries and is mostly tied to post-pandemic effects and the war in Ukraine. So if you ignore the debilitating influence of Trump, you would expect inflation to continue to drop in the US too.
The 3% rate isn't actually all that high currently, but you'd expect it to trend up again due to tariffs, both from the actual effects and as an excuse for companies to raise prices.
Or Trump could cause a serious recession/depression, in which case inflation will drop (but you won't be able to buy anything anyway, since you'll have lost your job).
You are correct. And if Biden or Harris had been elected and we could he reasonably assured we'd continue on a stable path we'd probably be in a different situation. But Trump and team are a different story.
Somehow, inflation returned
Definitely a solid onion headline worded like that.
They forgot the /s
I was thinking exactly the same thing... maybe with the exception of the 30% that actually believed his bullshit enough to vote for him... I've been bracing for the huge inflation bolster since he was elected...
Hell trump and musk have kind of warned us, inflation is going to get worse (and lied about it being so it can get better... ignoring the general fact that inflation is a one way street, you can't fix it... you can only slow it down, and/or speed up wages to catch up to it)
British humour.
Unexpectedly? By who?
Pretty sure tons of people said that if Trump takes office, inflation would skyrocket thanks to the tarrifs and all his other bullshit... This was entirely expected. It's the result we all knew was coming if he took office.
If it were any Democrat in office right now, the media would have been pinning the blame harder than fighting games got blamed for violence in the 90s. Getting real sick of the narrative they're spinning.
If a Democrat were in office inflation wouldn't have increased.
It's January numbers, a month Biden was in office the majority of.
Absolutely, the moment he won is when it really started. All industries reacted and changed based on this. My friend works in the renewable energy industry, and basically, all of his projects and contracts dried up by December based off what they knew was coming. He basically does nothing for the foreseeable future except wait or get fired. Surely all this change is already seeing a real impact for January numbers.
Yep, Trump's policies are so awful it only took 10 days to undo the progress made in the previous 20.
And what happened after he left office? Was there a surprise reveal?
And his idea to fix inflation? Cut interest rates.
Turkey did this and the value of their currency halved in value per year for two consecutive years. Imagine if in 2 years a dollar became worth only 50 cents and then a quarter. Everything would cost four times more and, if wages didn't keep up, there would be a revolution (or at least I'd hope so).
Eggs at $32/dozen. One can only dream.
they Turkish lira lost way more value than that overall. it's still losing value but at a much slower rate. its value is 1/9th of what it was in 2018 before the first big crisis. and 1/6th of what it was in the height of that crisis.
People that understand economics said that People who labor under the delusion that Republican administrations are better for the economy thought otherwise.
Republicans just took power.
Not unexpected at all.
We hired one of the worst people in the world to lead us. It's a stretch to call this unexpected.
Exactly.
Hired is a stretch.
This is the top comment on my screen and it's perfect.
Love this
Unexpectedly?
Yiyre kidding, right? I was quite literally waiting for this news. It never wss an if, just how bad
What's unexpected about it? We re-elected a twice impeached anti-democratic felon rapist who utterly failed his last term.
Every American who could rub brain cells together warned this would happen.
Unfortunately, those people represent a minority in The Divided States of Dumbfuckistan.
sounds like BBC is doing damage control for mango mussolini.
the "unexpected" part is that the 3% is above the expected 2.9% rate. they're being coy; the title implies the increase is unexpected while the text shows it's just a tenth of a point above the rate that was expected.
the editors are not uneducated people. I bet they speak English pretty well. the wording is deliberately misleading.
Dem clicks doe
Or, the people with 2 brain cells to rub together don't call for ballot counting like cheerleaders of the dumbfucks do. Missing that 3rd brain cell...
How is this different than putting a "biden did this" sticker on a gas pump?
Why is inflation related to his term? Its fine if it is but can we please make sense with our outrage?
That article is carrying a lot of water for the Trump administration. Nobody knows why prices are going up!
Import tariffs are explicitly inflationary. Even the rhumor of them is arguably inflationary. Lowering the interest rate (which Trump is currently in the midst of bullying the Fed chair into doing ) is also explicitly inflationary.
All of the things he has done that actually pertain to inflation have been to increase it.
Yeah, which is why this is a bad article from the BBC. The headline should be, Trump Causes Inflation.
Just admit you only read the Headline.
No, I read the article.
Unexpectedly?
Even the Spanish Inquisition was blindsided by this.
Oh God, no! It's the Spanish inflation!
ahem, Spanish Influation
Our two main weapons are tariffs and corruption!
Unexpected by whom?
Republican voters
Dumb people doing dumb things
![email protected]
Good job on voting to cancel out Joe Biden’s monopoly breakup because he didn’t do it fast enough
"If things aren't good enough, we should make them worse to teach those layabouts a lesson!" - People who have no intention of suffering the consequences of their actions
I'm not going to vote for good, I demand perfection!
- a bunch of Americans with Pikachu faces right now
“Unexpectedly”
If it’s anything to me, it’s unexpectedly low.
There's nothing unexpected about it. Have they not been paying fucking attention to what the Orange Jackass had been doing to is?
It's probably the BBC's attempt not to get sued ;)
Shocked pikachu face
who ever wrote this article is a total moron. Unexpectedly? noo.
Unexpectedly by who!?
The people who voted for the authoritarian liar. They are equally shocked at the leopard knawing on their face.
You're likely vastly overestimating their understanding of inflation. For many of them it came down to "China pays for it!" and they have no further knowledge or insight beyond that.
Yes, China pays for it, just like Mexico paid for the wall 🙄.
I fucking love how there is basically only one comment on this entire post
Yeah well these news publications are starting to blatantly insult everyone's intelligence now. If it was really unexpected, there wouldn't be a bunch of comments here saying "Unexpected? Really?"
And the dozens of people who made that comment didn't read so much as the first part of the first sentence of the article.
It's not the inflation that was unexpected, it's the amount. You can't get your news from headlines, people.
"Unexpectedly"? Everyone but the MAGA idiots expected it.
The only thing unexpected here is the bad headline. Simply using the first sentence would be more accurate and meaningful
Wait. Unexpectedly for who? I certainly expected it. Most people I've talked with are also not surprised.
Then those interviewed and writing this article are idiots. 2024 article.
link.
Maaaybe tarrifs are not that great
It's been pretty great for China so far.
Wait, that's not what you meant, was it?
I'm not entirely sure which country's employee of the month Trump is this time of the year. Maybe China? I can barely keep up.
I mean I don't know if he intended to give China a massive assist with his dumbass tariffs, but he sure is.
Who could have expected this
Thank President Musk and his First Lad Trump.
Is this the same people who couldn't think Brexit was bad for their economy?
it misspelled "more than expected"
don't only read headlines
Before reacting, read the article
This is significant for bankers, but not for regular people. You're not going to notice that inflation is 0.1% higher than expected
0.1% for someone with a $500,000 mortgage would be $500.
0.1% for a large company, like say, Blackrock, that has $15 billion dollars in debt, is 15 million dollars.
Edit: however, Blackrock also *profited to the tune of 4.7 billion dollars, so the 0.1% increase is a 0.3% cut into their profit from last year. They can absolutely afford it.
Driven primarily by….
The cost of eggs. Yes regular people are going to notice this.
Food at home up 1.9%
You didn't even check what it's driven by, but you confidently state it
I’m just basing my opinion on the text of the article. The article you told people to read:
Then you reply with a statistic that doesn’t appear in the article with no reference. Fucking MAGATs.
https://www.bls.gov/news.release/cpi.nr0.htm
I check the official sources
I'd be interested in seeing where the inflation was higher than expectations. He's only been in office a few weeks; most of these markets don't react that quickly.
Edit: Ahh, Lemmy. Where people get down voted for wanting more information.
Its also not like Trump wasn't affecting the markets until the day he was inaugurated. He was literally illegally meeting with foreign leaders during the campaign.
What's illegal about it?
It's called the Logan Act. There are actually laws about how civilians can interact with foreign officials. Dennis Rodman famously violated those laws when he went to North Korea to act in an official capacity that wasn't officially sanctioned. Trump is a civilian until inauguration, so his meetings with heads of state to discuss official matters (not just shooting the shit about movies and new restaurants) would have had to be sanctioned to be legal.
Just like it says: Rodman went in an official capacity but wasn’t given the authority. He did it on his own. It wasn’t officially sanctioned so he either lied or was just oblivious.
Well, the meeting...
So the meeting is illegal because it's a meeting. Gotcha
You asked what's illegal, not why it's illegal.
https://www.bls.gov/news.release/cpi.nr0.htm
Shelter, gas heating and transportation up
Oil down
Not when you start tariffs wars with allies that you signed trade agreement with.
I expected this ages ago, I must have superpowers or something
Say goodbye to the middle class. We just gave what was left of it to billionaires.
The "middle class" was just a scam our ruling class came up with to make us feel like we're not at the bottom rung of the social economic ladder so we wouldn't riot over being taken advantage of for decades. In reality there are only two classes the extremely rich and the poor.
In reality there are only two classes: the working class, and the ownership class.
Exactly!
Nah man my parents were able to build a really nice life from almost nothing by working hard and going to school. That doesn’t work anymore.
The oppression was there back then too, people put up with it more, and shared their thoughts with strangers less.
And if you put up with it and do what you are told, the ultra rich might let you build a "nice enough life".
Probably in unionized jobs, huh?
Leave it to USA Today to bring the bleak toxic positivity.
So, tarrifs have impact after all?
I buy steel products and the domestic prices are already increasing. Defeats the point of buying here vs importing. 🤷♀️
Yeah that's because the U.S. doesn't have the production capacity to support its steel demands. We import something like 20% of the steel we use, and it's mostly from our neighbors, which these fucking dumbasses are pissing off for zero benefit.
Biden took a protectionist action by blocking a Japanese company's purchase of a major US Steel company. Trump took further protectionist action by tariffing foreign steel.
Now both of those may have backfired because the market manipulation prevented outside investors from modernizing US steel production facilities, and protective tariffs by definition raise prices.
In effect it is less competition and crappier product for US consumers.
His rationale is to slowly bring that production back to the US. Can the US even make enough steel to meet its demand domestically?
The theory is that it'll hurt for 5 to 10 years but be economically beneficial in the long run.
He doesn't have rationale.
He could just pass laws to require more steel production, even subsidise it, which would work faster and not be painful, but that kind of planning and forward thinking are beyond a conservative.
From the BBC? Wow!
I can mentally hear exactly why the inflation is rising in the voice of good ol' dear David Attenborough.
When will we start seeing stickers at gas pumps and at grocery's saying "Trump did this".
How about flags saying "Let's Go Eric" as an answer to all the let's go Brandon flags
Let's go Felon!
"unexpected"
Unexpectedly?????? WT actual F??????
wait, printing multiple trillions of dollars causes inflation?! :pikachu:
I wouldnt be surprised if foreign investors in US Bonds were dropping that shit like it was radioactive.
Just snuck up on everyone without warning! 🫣
Where’s that sliced cheese 1ady when you need her?
She calls out shrinkflation, but doesn't understand what it is or that capitalists are at fault.
Are you saying there's only 63 slices of American Cheese!?
Good job Homer! You avoided blindness by only a single slice.
I would rather have 64 slices of American Cheese.
"unexpectedly". yep nobody anywhere ever saw it coming. idjits
Unexpectedly? LMAO
Trump's fine with that as far as his gold reserves are going to skyrocket in value. That's maybe one of the reasons why he wants these tariffs so bad in the first place.
(Get precious metals asap, btw.)
This US INFLATION 'increase' is about the smallest possible;
the headline is at best misleading and sensationalism at worst.
' UNEXPECTEDLY INCREASES' should say 'inched from 2.9% to 3%, which happens routinely at the beginning of every year'.
0.1% is the smallest unit it can go up by.
This is literally a nothing burger
I agree that it's probably a sensational article. No matter what the numbers actually are - it's too early to draw a line to Trumps policy decisions.
It's cherry picking, but I'll point out the 15% increase in the cost of eggs due to Avian flu. I mean, if we blamed Biden for inflation over the last several years then we can place this at Trump's door step surely?
In any case, I look forward to seeing the MAGA-splaining in the coming months.
Is it too early? Considering that a substantial portion of our imported goods originate from a country subject to a 10% tariff, wouldn’t this policy inevitably lead to significant price increases for those products?