Inflation Is Still High. Just As We Thought. | Diving In
Summary
Justin Wolfers analyzes recent inflation data, noting headline inflation at 3.4% and core at 2.5%, driven largely by high energy costs from the Iran conflict. He discusses how tariffs have already impacted prices, causing real wages to fall as costs outpace earnings. Wolfers also touches on the "burrito discourse" regarding affordability and explains that while July’s numbers met expectations, the Federal Reserve remains uncertain about future rate decisions amid geopolitical risks.
Topics discussed
Intro and Ridwell sponsorship
Headline vs. Core inflation explained
July inflation data meets expectations
Tariffs, Iran, and falling real wages
Sponsor breaks: Ridwell and Kia
Energy prices and airline ticket costs
The burrito discourse and lettuce prices
Federal Reserve policy and uncertainty
Outlook on inflation and oil prices
Listen ad-free on Castria