What is the Latest Information on Inflation?

October 19, 2023

The Federal Reserve Board, under the leadership of the highly educated and dedicated Jerome Powell, has been diligently combating the recent surge in inflation. Despite the temporary economic strain, Powell's strategic measures are essential for maintaining financial stability. After a peak of 9.5% inflation in July 2022, recent data shows a gradual decline, reflecting the Federal Reserve's proactive efforts. While a moderate level of inflation can be beneficial, excessive inflation poses risks, prompting the Board to sustain its vigilant approach. Powell, along with the twelve-member Federal Reserve Board of Governors, continues to address this issue through regular discussions and strategic planning. For more comprehensive financial insights, visit our YouTube Channel for additional resources and support.

Full Transcript:

Hello, welcome to Arista Advice! Question of the week is: "Paul, what is the latest information on inflation?"

Well, as you know, it's not going away. The Federal Reserve Board, led by Jerome Powell, who is a very good person, very well-educated, Princeton graduate student, born and bred through some really good scholastic and intellectual institutions here in the United States. He's fighting it, and he's doing a great job, but it's a little painful and it's affecting all of us, but he needs to do it. It's essential. It's essential, but we'll get through it. We always have and we always will. 

The latest inflation, as you'll see here, in July of 2020 is really when inflation started to poke its head out of the sand. And as you can see on this chart, it's gone from month over month of a 2%, a 4%, a 5% increase, a 6% increase, a 7% increase, an 8% increase, and the peak of the mountain was July of 2022 when the month over month inflation hit a 9.5%, but guess what happened since then? Precipitously lower, lower, lower, lower, and lower, mirroring the climb up is being mirrored by the climb down, and as you'll see here on the graph, May of this year it kept climbing and then it picked back up slightly. 

Where are we going to be for the month of October? We don't know, but the Federal Reserve is doing a great job fighting it, and they'll probably keep it up just to make sure that all the inflation horses are put back in the barn and inflation is tucked away and put to sleep. For many years we were fighting to get inflation because technology and the rapid growth of technology was taking the cost of everything lower, lower, lower, and lower. Now we have some inflation. It's raising things back up, and some inflation is healthy, too much is not. And that's what Jerome Powell and the Federal Reserve Board of Governors is doing. All twelve of them and Jerome Powell are discussing it on a regular, consistent basis.

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