The holiday season is almost here and, as always, it’s a great time to reflect upon the economic health of the nation. This year, the inflation data is particularly good news for consumers, as it brings some much-needed cheer for those who are struggling to make ends meet in the face of the COVID-19 recession.
The Consumer Price Index (CPI) from the Bureau of Labor Statistics (BLS) indicates that core inflation, which excludes food, energy, and gasoline, rose by only 0.2% in October. On a yearly basis, core inflation now stands at 1.6%, which is lower than the target rate of around 2% set by the Federal Reserve. The CPI also showed that prices for food, alcohol, tobacco, and apparel were all up for the month, which most likely reflects an increase in holiday shopping.
These figures indicate that inflation is not causing a major problem for consumers this holiday season, and it could even turn out to be a positive for some shoppers. With overall inflation staying low, the price increases we’ve seen this year in so many areas won’t be reflected in the cost of gifts and other holiday expenses. This could give households some extra spending power to cover the extra costs associated with the season, such as decorations, food, and travel.
The good news from the inflation data is further indication that the economy is still stable and there are more positive signs to come as 2021 approaches. The virus-related downturn is certainly taking its toll on households, but the BLS data indicates that core inflation is not rising too rapidly, which bodes well for the road ahead.
All in all, this year’s inflation data is a welcome sign for many households as we enter the holiday season. The low amount of core inflation, combined with the prices on many items increasing only slightly, may mean that some shoppers can expect to have a little more cash for gifts and other expenses. This could help ease some of the financial strain felt by so many as the year draws to a close.
The holiday season is almost here and, as always, it’s a great time to reflect upon the economic health of the nation. This year, the inflation data is particularly good news for consumers, as it brings some much-needed cheer for those who are struggling to make ends meet in the face of the COVID-19 recession.
The Consumer Price Index (CPI) from the Bureau of Labor Statistics (BLS) indicates that core inflation, which excludes food, energy, and gasoline, rose by only 0.2% in October. On a yearly basis, core inflation now stands at 1.6%, which is lower than the target rate of around 2% set by the Federal Reserve. The CPI also showed that prices for food, alcohol, tobacco, and apparel were all up for the month, which most likely reflects an increase in holiday shopping.
These figures indicate that inflation is not causing a major problem for consumers this holiday season, and it could even turn out to be a positive for some shoppers. With overall inflation staying low, the price increases we’ve seen this year in so many areas won’t be reflected in the cost of gifts and other holiday expenses. This could give households some extra spending power to cover the extra costs associated with the season, such as decorations, food, and travel.
The good news from the inflation data is further indication that the economy is still stable and there are more positive signs to come as 2021 approaches. The virus-related downturn is certainly taking its toll on households, but the BLS data indicates that core inflation is not rising too rapidly, which bodes well for the road ahead.
All in all, this year’s inflation data is a welcome sign for many households as we enter the holiday season. The low amount of core inflation, combined with the prices on many items increasing only slightly, may mean that some shoppers can expect to have a little more cash for gifts and other expenses. This could help ease some of the financial strain felt by so many as the year draws to a close.
