What type of math is this?

I am putting this under humor.

Because this is some funny math.

8.7% is not zero. What did he mean? It didn’t go up?

I think there are some signs it’s going to be coming down, but 8.7% is not something to celebrate and it’s not 0.

You tell me!!!

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Which July is he talking about… probably a July during the Trump years.

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Here is what they are talking about. The CPI index did not move month over month. There was 0% monthly inflation. The reason why the annual inflation number retracted from 9.1% to 8.5% is because of the inflation that happened from Jun-21 to Jul-21.

Here is what is meaningful that most people fail to understand. Gas prices dropped significantly (I paid $3.25 last night) from the peak that happened in June. Despite the gasoline prices falling, everything else increased to offset the decrease in gasoline cost. Despite the headline number falling, we are no better or worse off than we were last month.

Period CPI Index Monthly Inflation
Jun-22 296.311 1.4%
Jul-22 296.276 -0.01%

Here is the chart that I updated. It is hard to see so I will screenshot the tiny little part that they are referring to.

Zoom in of the zero monthly inflation. Its really hard to see. People celebrating but still don’t really grasp what is happening.

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One thing to remember is that Housing makes up about 1/3 of the CPI number and therefore has the greatest influence. Here is a good reference for the composition of the CPI:

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Yes, actually it turns out the CPI was zero for July.

This actually brings another point.
If Biden could put coherent sentences together, and if anybody actually believed he was smarter than a bag of hammers, he easily could have announced this as a positive for the economy.

Falling gas prices were completely offset with higher other stuff. Another way to say it, gas prices experienced monthly deflation; however, this was completely offset by higher inflation on other goods.

So for the current month, unless there is another massive slide in energy prices, inflation is coming back next month. My estimate be back to 8.7%+ next month. Oil is going to have to collapse to sub $80 this month to get the same CPI benefits that we got in July.

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