The latest report on inflation is in, and it seems the numbers are causing quite the stir. The Consumer Price Index (CPI) for June came in at 3.5%, defying the experts’ gloomy predictions of a 3.8% rise. While any number with a decimal might seem minute to the casual observer, in the world of economics, it’s apparently a big deal. The current inflation figure is said to be the best news on the economic front in over six years. Bear in mind, this observation should exclude those pesky energy costs. But if you squint and tilt your head, core inflation is at a near idyllic 2.6%, right where the Federal Reserve supposedly wants it.
This delightful economic performance isn’t limited to one sector. Auto insurance costs are down, which apparently is thanks to police efforts that have curbed car thefts. Less theft, lower policy costs—who would have thought? Grocery bills are also lightening, with tomato prices dropping significantly. The report even boasts the largest decline in drug prices since the Second World War. The administration credits these favorable conditions to President Trump’s policies, claiming his strategies are making America the ‘most favored nation’ again. One can’t help but wonder about the mix of supply, demand, and a sprinkle of policy magic dust that led to this economic trifecta.
But let’s address the elephant—or rather the oil— in the room: energy costs. While gas prices have been dropping compared to recent peaks (which we’re reminded were due to chaos in Iran), they still press harder on Americans’ wallets than a year ago. It appears when oil prices were flirting with $150 a barrel, they left everyone shaking, but now they’ve settled down to the low 80s. The administration believes this calm is due in large part to the U.S. Navy’s efforts keeping those all-important straits clear for oil transport. Despite the ongoing turmoil, they assure us that disruptions will be minimal, unlike those 67 aforementioned economists who seem to have gotten it all wrong.
Horse-and-buggy dreams of $3 a gallon at the pump tantalize the administration, and they assure us it’s still more than realistic. The target was within sight until those pesky Iranians, chanting their unsettling mantras, stirred up another round of upheaval. President Trump, determined to prevent them from getting nuclear weapons, sees the long-term benefits outweighing the short-term costs. The predictable promise here is cheaper gas and greater global safety. Expect no less from a president committed to the vision that involves no nuclear weapons for unfriendly regimes.
In other news tinged with administrative wisdom, new regulations advise banks against issuing loans to undocumented immigrants. It seems lending money to folks who might be deported was perhaps not the most financially sound idea. With this common sense regulatory tweak, the Trump administration highlights their focus on maintaining financial stability. Who would’ve thought banks needed such guidance? In the grand parade of regulatory measures, this one might just have been the trick they needed to align with fiscal common sense. While some might raise eyebrows at the transparency of it all, the administration stands its ground, ready to dance to its economic tune with gusto.
