Opinion Inflation: Still Not Whipped
The Wall Street Journal
Opinion by The Editorial Board
The September price data released Thursday put a statistical gloss on what voters already know: Inflation remains persistent. This is an October non-surprise in this presidential election year, and perhaps an uncomfortable moment for Federal Reserve Chairman Jerome Powell.
The headline consumer-price index increased 2.4% year-on-year in September, a slight deceleration in the rate of price increases after the 2.5% reading for August and 2.9% in July. But the so-called core measure, excluding food and energy, remains stubbornly high—3.3% in the latest data, 3.2% in August, 3.3% in June, 3.4% in May and so on. As long as the inflation rate is positive, prices are increasing. This at a time when inflation-adjusted weekly earnings remain well below their January 2021 level, despite recent improvement.
Some economists say chronic problems measuring housing costs make inflation appear higher than it is, which may be true. The Fed prefers an entirely different data series, personal-consumption expenditure, which has indicated a core inflation rate below 3% in recent months.
But voters know how much they’re paying for eggs, auto insurance, electricity, children’s clothing, butter, haircuts, and other goods and services whose prices keep rising well above the Fed’s target of 2%. Any Democrat still confused about why Kamala Harris is in a tight race rather than cruising to victory against Donald Trump should mute the Wall Street talking heads on CNBC and go to a supermarket.
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