Everyone is keeping a close eye on economic data looking for any signs of change, for better or for worse. CPI and PPI may be indicating that inflation has in fact peaked, as the employment picture, for the moment, is still looking strong. For that and more interesting news of the week, read on.

Economics

• The monthly gain in CPI for July was 0% for the first time in over two years, and year-over-year backed off the previous peak to 8.5%. (AP News)
• Seeking Alpha provides a break down and analysis of all the components of CPI and where they are at the moment. (Services and rents are still climbing. Note that the average of July, August and September will be used to calculate the Social Security COLA adjustment for next year!
• The Produce Price Index, which measures wholesale prices of goods, actually decreased 0.5% In July (first decrease since April 2020) and was up 9.8% year-over-year, the lowest since October 2021.
• (CNBC)
• If you are curious about the economy and the Federal Reserve under Paul Volcker during the high inflation period in the 1980’s, this New York Times story is a good source. (subscription may be required). For more on this comparison and some lesson ideas, check out this recent NGPF EconExtra.
• Unemployment claims this week ticked up to 263,000 but are not yet in “slowdown” territory. (Reuters)
• The Overshoot does an excellent job of explaining how the strong job market and increasing wages can feed inflation. When is a job market “too good?”
• If you are looking for an accessible research paper examining what happened in states where pandemic unemployment benefits ended sooner, check out this briefing from the St. Louis Fed.
• Remember the Great Resignation? Those job-hoppers are seeing record wage/salary increases (6.7%) over those who stayed put. (Bloomberg-subscription may be required)
• What is “degrowth?” The notion that the planet cannot sustain ever increasing consumption demand is coming back to life as climate change accelerates and supply chain disruptions impact even the richest countries. (Reuters)

Investing

• Is the bear market now over for NASDAQ? (Markets Insider)

Taxes

• What will the IRS do with $80 billion? The list includes lots of hiring, lots of updating, and hopefully, a lot more collecting. (WAPO-subscription may be required)

Personal Finance

• According to a survey by the group intelliflo, all generations recognize the need for more financial guidance. (BusinessWire)

Consumer News

• Disney outnumbers Netflix in subscribers and decides it is time to raise prices by 38%. (Reuters)
• The Department of Transportation is proposing that airline passengers have more the rights around flight cancellations, including the right to a full cash refund. (CNBC)

About the Author

Beth Tallman

Beth Tallman entered the working world armed with an MBA in finance and thoroughly enjoyed her first career working in manufacturing and telecommunications, including a stint overseas. She took advantage of an involuntary separation to try teaching high school math, something she had always dreamed of doing. When fate stepped in once again, Beth jumped on the opportunity to combine her passion for numbers, money, and education to develop curriculum and teach personal finance at Oberlin College. Beth now spends her time writing on personal finance and financial education, conducts student workshops, and develops finance curricula and educational content. She is also the Treasurer of Ohio Jump$tart Coalition for Personal Financial Literacy.