The consumer price index (CPI), which measures the cost of living for average Americans, increased to the highest level in nearly 10 years during the month of July according to a new report from the Labor Department.
From Bloomberg:
The core measure of the Consumer Price Index, which excludes food and fuel, rose 2.4 percent from a year earlier, the biggest advance since September 2008, a Labor Department report showed Friday. From the prior month, both the main CPI index and core rate rose 0.2 percent -- matching expectations.
While shelter costs gave a big boost to the results, steady consumer demand is underpinning inflation just as a trade war threatens to lift costs on a range of goods. Sustained progress toward the Fed’s goal keeps the central bank on track for one or two more rate hikes this year even as price pressures are a blow to already weak increases in paychecks.
The Labor Department's report also shows that inflation-adjusted wages were 0.2 percent lower in July compared to a year ago because the cost of living is rising quicker than wages.
You know, no one with half a brain expected the GOP's tax cuts would actually increase wages like they claimed it would, but the fact that wages have consistently declined since the tax cuts were passed is truly remarkable. The Republican party sits atop a fail-tree and they're extraordinarily adept at hitting every branch on their way out of office.
And Democrats will have to fix everything. Again.
It's impossible not to notice that we keep reaching milestones comparable to the fall of 2008.