Give Biden Credit For Bigger Than Expected Drop In Inflation

President Biden has been telling the American people that his policies would lead to an easing of inflation and he seems to be right.

I apologize for the error in the headline of the previous edition of this newsletter. I learned a valuable lesson today, and that is to put a delay on the auto-sending of the email. Sorry for the double email. Here is the correctly titled version of this morning’s newsletter. Thank you for your patience while I learn a new system. — Jason

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Good News On Inflation

Inflation is a thorny issue. No president ever wants to hear the I-word. Inflation can be a difficult dragon to grab by the tail. Once it gets going, inflation generates a self-feeding cycle that drains the bank accounts of regular folks and has been the undoing of more than a few political careers, which is why the good news on inflation is a really big deal.

The Wall Street Journal reported on the new CPI report:

Consumer prices rose last month at the slowest 12-month pace since December 2021, closing out a year in which inflation hit the highest level in four decades and challenged the Federal Reserve’s ability to keep the U.S. economy on track.

The Labor Department on Tuesday said that its consumer-price index climbed 7.1% in November from a year ago, down sharply from 7.7% in October—building on a trend of moderating price increases since June’s 9.1% peak.

Core CPI, which excludes volatile energy and food prices, rose 6% in November from a year ago, easing from a 6.3% gain in October. September’s 6.6% increase was the biggest jump since August 1982.

Here is guessing that cable news won’t be full of breathless stories about how inflation dropped more than expected, and that is good news for the American people.