CPI Watchtower

  Consumer Sentiment Takes a Slight Dip in July 2024 The University of Michigan’s Consumer Sentiment Index (CSI) declined slightly in July 2024, falling from 68.2 in June to 66.4. While this marks a modest decrease, it indicates that consumer confidence is still fragile and susceptible to economic fluctuations. Factors Contributing to the Decline Several factors may have contributed to the decline in consumer sentiment: Persistent Inflation: Although inflation rates have been moderating, they remain elevated compared to historical averages. Consumers may still be feeling the pinch of higher prices on their household budgets. Uncertainty About the Economy: The overall economic outlook remains uncertain, with concerns about potential recessions and geopolitical tensions persisting. This uncertainty can lead to caution and hesitation among consumers when making spending decisions. Rising Interest Rates: The Federal Reserve’s ongoing int...

  August 2024 CPI Surges to 314.121 The latest Consumer Price Index (CPI) report released today indicates that inflation continues to rise at a concerning pace. The headline CPI for August 2024 came in at 314.121, up from 313.534 in July and 306.187 in August of the previous year.   Key Takeaways: Persistent Inflation: The ongoing upward trend in the CPI highlights the persistent inflationary pressures facing the economy. Year-over-Year Growth: Compared to August 2023, the CPI has increased by 2.6%, suggesting that prices are rising at a faster rate than a year ago. Impact on Consumers: The rising cost of living is likely to strain household budgets and reduce consumer purchasing power. Factors Driving Inflation: Several factors are contributing to the current inflationary environment, including: Supply Chain Disruptions: Ongoing supply chain issues, exacerbated by the ongoing global pandemic and geopolitical tens...