Inflation data to provide insights whether price slowdown continued as election approaches
Date
10/10/2024 9:06:48 AM
(MENAFN) Inflation data set to be released on Thursday is expected to provide key insights into whether the months-long trend of slowing price increases has continued or if there has been a setback as inflation nears more typical levels. This report will be especially significant as it comes just weeks ahead of the upcoming presidential election, where inflation has become a major point of debate between Vice President Kamala Harris and former President Donald Trump. With inflation previously peaking at nearly 9 percent in 2022, it has since slowed to hover close to the Federal Reserve’s target rate of 2 percent.
Economists are forecasting that inflation will have risen by 2.3 percent over the 12 months ending in September, which would signal a continued slowdown from the 2.5 percent rate recorded in August. The report will offer a crucial update on the nation’s inflationary trends, as any fluctuation could have significant implications for the broader economy and political discourse. This comes on the heels of the Federal Reserve’s recent decision to cut its benchmark interest rate by half a percentage point, a move that indicates a shift in focus from combating inflation to sustaining a strong labor market.
Federal Reserve Chair Jerome Powell emphasized this shift in policy during a press conference last month, explaining that the recalibration aims to maintain both economic strength and job growth. Weaker-than-expected employment numbers in July and August had raised concerns among some economists about the country's economic outlook, with fears that a slowing labor market could further complicate the inflation recovery.
However, a positive jobs report for September helped ease those concerns, as it showed employers hired 254,000 new workers, far surpassing the predicted 150,000. The data from the U.S. Bureau of Labor Statistics painted an optimistic picture of the labor market, with strong hiring, steady job retention, and rising wages. This robust labor performance adds another layer of complexity to the inflation narrative, as it suggests the economy remains resilient despite earlier warnings of potential slowdowns.
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