Inflation rose but not as much as one might have expected. The all items index increased 3.2% which reflects a number of different classes of metrics. We find there is an inverse relationship between unemployment and inflation. Unemployment declines, and inflation rises. Inflation slows and unemployment increases. The relationship makes sense if we see labor as a finite resource where as more labor is committed to production, those numbers would decline as the demand for those resources increases (
also increasing wages, investment in technology, etc.). You can read a study on inflation during the '
Covid period. Understanding U.S.Inflation During the COVID Era'
(As a side note. If one were to experience a platform shift there would be a new homeostasis in the economy as well as in some of its factors such as productivity metrics. Thus new technology can improve productivity through new tools, but the ability to find new uses for those tools and use them fully is in our human capital. Radical innovation leads to improved GDP as paired with human capital. When the later and former are in homeostasis we have larger growth as the pool of resources magnifies. This is why infrastructure helps create the tools and that is one stage of development while human capital's abilities to maximize those tools in new ways is the next rung of national development. Theoretically!)
Consumer Price Index Summary- JULY 2023.
You can read the press release by the U.S. Bureau of Labor Statistics
HERE.
The Consumer Price Index for All Urban Consumers (CPI-U) rose 0.2 percent in July on a seasonally adjusted basis
-All items index increased 3.2 percent before seasonal adjustment.
-Index for shelter was the highest followed by motor vehicle insurance. Food index increased .2 percent with increase .3 for food at home and .2 for food away from home
Two pretty solid articles on inflation that move into a level of analysis
No comments:
Post a Comment