The latest inflation report shows that consumer price growth has slowed to its lowest pace since President Biden took office, with inflation measuring 2.4% in September. Housing costs continue to be a driving factor in overall price increases, with the core inflation rate rising 0.3% on a month-to-month basis. While Americans are still adjusting to prices that are 21% higher compared to early 2020, higher costs remain a top concern for voters ahead of the election.
Former President Trump has blamed Vice President Harris for approving spending that he says has fueled inflation, but economists debate the role of fiscal stimulus in price increases. Trump’s proposed tariffs are disputed by economists, while Harris’s policies to cap rent and grocery price increases face skepticism. The Biden-Harris administration has benefited from stable gasoline prices, but uncertainty about the economy remains high among small business owners.
The economy appears to be on solid ground based on the data, with analysts suggesting that today’s inflation numbers could lead Wall Street to reduce expectations of an interest-rate cut at the Federal Reserve’s next meeting. However, there are still significant questions about the future direction of the economy, with small business owners hesitating to invest due to inflation and financing costs. The nation remains divided on views of the economy, with Republicans holding a more negative outlook compared to Democrats.
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