{"id":2049273,"date":"2023-09-29T08:36:02","date_gmt":"2023-09-29T12:36:02","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/inflation-ticked-up-slightly-to-3-5-in-august-in-feds-preferred-gauge\/"},"modified":"2023-09-29T08:39:52","modified_gmt":"2023-09-29T12:39:52","slug":"inflation-ticked-up-slightly-to-3-5-in-august-in-feds-preferred-gauge","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/inflation-ticked-up-slightly-to-3-5-in-august-in-feds-preferred-gauge\/","title":{"rendered":"In August, inflation rose to 3.5% in Fed&#8217;s preferred measure."},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">20<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Finflation-ticked-up-slightly-to-3-5-in-august-in-feds-preferred-gauge%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2049273&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><h2>Inflation Rises\u200d to 3.5%: Bad News for the Economy and Biden Administration<\/h2>\n<p>The latest report from the Bureau of Economic\u200c Analysis \u200breveals that inflation has ticked up to 3.5% for the year ending in August. This measurement is based on the \u2062<a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/inflation-ticked-up-slightly-to-3-5-in-august-in-feds-preferred-gauge\/\" title=\"In August, inflation rose to 3.5% in Fed's preferred measure.\">personal consumption \u200bexpenditures price index<\/a>, which is the preferred gauge of the Federal Reserve. The report also indicates that \u2063inflation has slightly\u2063 increased in the past month, \u2064despite the \u200bFed&#8217;s efforts to\u200d slow it \u200bdown by raising\u200d interest rates.<\/p>\n<p>This news \u2063is concerning for \u2062both the economy\u2063 and the Biden administration, as it shows that inflation is still above the central bank&#8217;s target\u200d of 2%\u2064 annual\u2062 price growth. The administration has been trying to highlight \u200bpositive \u2063economic developments, such as low unemployment\u2064 and solid economic\u200b growth, as evidence\u2064 that their economic agenda is successful. However, the persistent inflation challenges their narrative.<\/p>\n<h3>Core PCE Inflation Falls to \u20623.9%<\/h3>\n<p>One measure \u200cof inflation, known as core PCE inflation, which excludes energy and food \u200dprices and\u2062 is generally less \u2063volatile,\u200d has \u200dfallen to a 3.9% year-over-year rate. While the personal consumption \u200bexpenditures \u200dprice index\u2062 is the \u200bFed&#8217;s preferred gauge, the <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/futures-rise-in-run-up-to-key-inflation-data\/\" title=\"Futures climb ahead of crucial inflation data.\">consumer \u200dprice index<\/a> is more commonly cited. According\u200d to the CPI, inflation was at \u200d3.7% in August.<\/p>\n<p>Despite the Fed&#8217;s efforts to tighten monetary policy, inflation has significantly decreased from\u2062 its\u2062 peak last summer. \u2062Surprisingly, other economic indicators, \u2064such as gross \u2062domestic\u200c product growth, have remained positive. The Bureau of\u2064 Economic\u200b Analysis reported that the economy grew at a 2.1% annual\u2064 rate in the second quarter \u200cof this year, which is close to the pace of\u200b the previous quarter.<\/p>\n<p>However, there are signs of\u2062 a slowdown in consumer spending,\u2064 with an annual rate\u200d of \u20630.8% in the second quarter. \u200bThis could\u2062 be a result of the higher \u200dinterest rates. Many economists\u200d predict \u200bthat these rates\u200c will \u200ceventually impact the broader economy\u2064 and \u2062potentially\u200d lead to a recession in the future.<\/p>\n<p>PNC Chief Economist Gus Faucher stated that PNC\u2064 expects a mild recession to begin \u2063in the second quarter \u200dof 2024 due\u200b to the\u200b ongoing impact of higher interest rates. However, he believes that \u200cthe \u2064recession will be relatively mild \u2062thanks to strong consumer \u2064balance \u200csheets and a tight \u2062labor market that will discourage layoffs.<\/p>\n<p><a href=\"https:\/\/www.washingtonexaminer.com\/\">Click here<\/a> to\u200c read more from The Washington Examiner.<\/p>\n<p> <\/p>\n<h2> How does inflation pose challenges for businesses, particularly small businesses, \u200cand what can be done to mitigate these challenges?<\/h2>\n<p><span>  And the Biden administration. Inflation at 3.5% indicates a rise\u200d in the overall price level of goods and\u200c services over the past year. \u2063This erodes the purchasing \u2063power of consumers and puts a strain on the economy.<\/p>\n<p>One of the key issues with rising inflation is the impact on\u2064 consumers. As prices increase, people&#8217;s budgets stretch thinner. Essential goods and services become more expensive, making it challenging for individuals and families to meet their basic needs. High inflation also\u200c reduces the real value of wages, putting additional financial stress on households.<\/p>\n<p>For businesses, inflation can \u200cpose several challenges. Manufacturers and producers \u2062face higher\u200c costs for raw materials and inputs, which can eat\u2063 into their profit margins. These increased costs often get passed on to consumers in the form\u200c of higher prices. Small businesses, in particular, may struggle to\u200b absorb these rising costs, potentially leading to layoffs \u200dor closures.<\/p>\n<p>Inflation can also have broader implications for the economy as a whole. It creates uncertainty and makes it difficult for businesses and investors to plan for the future. This can lead to a decrease in investment and <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/japanification-how-americas-economy-could-see-a-permanent-decline\/\" title=\"\u2018Japanification\u2019: How America\u2019s Economy Could See A Permanent Decline\">slower economic growth<\/a>. Additionally, inflation can \u2062negatively impact\u200d the value of the dollar, making imported goods more expensive and potentially leading to a trade imbalance.<\/p>\n<p>The Biden administration is also faced with the challenge\u2064 of addressing inflation. Higher inflation can be seen as a failure of economic policy and can undermine public confidence\u2063 in the government&#8217;s \u200cability to manage the economy. It puts pressure on the administration to take action and implement policies \u200cthat can\u2062 bring inflation \u200cunder control.<\/p>\n<p>The \u200cFederal Reserve plays\u200d a critical role in managing inflation. The Fed\u200c has been \u2064raising interest rates in an attempt to slow down\u200c inflation. By increasing interest rates, \u200bthe Fed aims to make borrowing more expensive, which \u2062can reduce spending and ultimately \u200bdecrease demand for goods and services. However, it seems that these efforts have not been\u2064 entirely effective in curbing\u2062 inflation.<\/p>\n<p>Moving forward, it is crucial for policymakers to closely monitor the inflation situation and take appropriate actions to mitigate its impact. This may involve a combination \u2062of fiscal and monetary policies, such as tightening government \u200cspending\u2063 and implementing measures to control price increases. It\u2062 is also important for the Biden administration \u2064to communicate its plans and strategies to the public to build trust and confidence in its ability to address the issue.<\/p>\n<p>In conclusion, the rise in inflation to 3.5% is a concerning development for the economy and the Biden \u200dadministration. It \u2062puts pressure on consumer purchasing\u200d power, poses\u200c challenges for businesses, \u2062and creates uncertainty for the overall economic outlook. Addressing and managing inflation will require careful policy decisions and effective communication to restore stability and confidence in the economy.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Inflation rose to 3.5% in August, according to the personal consumption expenditures price index, the Federal Reserve&#8217;s preferred gauge. The Bureau of Economic Analysis released a report on Friday morning, indicating a slight increase in inflation last month, despite the Fed&#8217;s efforts to curb it.<\/p>\n","protected":false},"author":1,"featured_media":2049274,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[538],"tags":[],"class_list":["post-2049273","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-washington-examiner"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2049273","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2049273"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2049273\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2049274"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2049273"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2049273"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2049273"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}