Inflation Stays Mostly Steady in July

The inflation rate ticked up slightly in July, but it’s basically been flat since the end of last year and is considerably under the peaks of 2018. However, the core inflation rate, which excludes erratic food and energy prices, continued its yearlong level above the headline rate as well as its two-year resistance to falling below 2 percent:

The Fed pays primary attention to the core inflation rate under the theory that the headline rate will eventually move toward it. It’s a pretty good theory, but at the same time, a two year-average just a hair above 2 percent is still not something to worry too much about. And more to the point, even though core inflation has increased for the past two months in a row, it shows no real sign of acceleration.

A core inflation rate above 2 percent is one reason the Fed is being cautious about stimulating the economy. If I were king of the world I’d suggest the Fed get cautious only when the core rate rises above 3 percent for a while or shows signs of significant acceleration. But I am not king of the world.

SIX TRUTHS

Reclaiming power from those who abuse it often starts with telling the truth. And in "This Is How Authoritarians Get Defeated," MoJo's Monika Bauerlein unpacks six truths to remember during the homestretch of an election where democracy, truth, and decency are on the line.

Truth #1: The chaos is the point.

Truth #2: Team Reality is bigger than it seems.

Truth #3: Facebook owns this.

Truth #4: When we go to work, we're in the fight.

Truth #5: It's about minority rule.

Truth #6: The only thing that can save us is…us.

Please take a moment to see how all these truths add up, because what happens in the weeks and months ahead will reverberate for at least a generation and we better be prepared.

And if you think journalism like Mother Jones'—that calls it like it is, that will never acquiesce to power, that looks where others don't—can help guide us through this historic, high-stakes moment, and you're able to right now, please help us reach our $350,000 goal by October 31 with a donation today. It's all hands on deck for democracy.

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SIX TRUTHS

Reclaiming power from those who abuse it often starts with telling the truth. And in "This Is How Authoritarians Get Defeated," MoJo's Monika Bauerlein unpacks six truths to remember during the homestretch of an election where democracy, truth, and decency are on the line.

Truth #1: The chaos is the point.

Truth #2: Team Reality is bigger than it seems.

Truth #3: Facebook owns this.

Truth #4: When we go to work, we're in the fight.

Truth #5: It's about minority rule.

Truth #6: The only thing that can save us is…us.

Please take a moment to see how all these truths add up, because what happens in the weeks and months ahead will reverberate for at least a generation and we better be prepared.

And if you think journalism like Mother Jones'—that calls it like it is, that will never acquiesce to power, that looks where others don't—can help guide us through this historic, high-stakes moment, and you're able to right now, please help us reach our $350,000 goal by October 31 with a donation today. It's all hands on deck for democracy.

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