High inflation is still with us

What's actually new today

Two main drivers - tariffs and Iran

Prices up, wages down

Energy ticked down, but not enough

The burrito discourse (yes, really)

What it means for the Fed

Looking ahead to what's next

The newest inflation report is out, and Justin Wolfers walks you through what actually matters. Annual inflation is running at 3.4% — well above what the Fed wants, and high enough to explain why the checkout line still feels uncomfortable. Core inflation, which strips out food and energy to predict where prices are headed, sits at a better — but still high — 2.5%. July's monthly numbers came in almost exactly as economists expected, which is why the report is less "news" than confirmation: prices are still rising quickly, just about the way everyone thought they would.

Here's what it means for you. Prices are outpacing wages, so real (inflation-adjusted) pay has fallen over the past year — the average paycheck buys less than it did twelve months ago. Energy is the main culprit: gas is up 25% over the year, diesel 39%, and airfares have shot up on the back of it. If you're flying anytime soon, that ticket is a whole lot pricier. Justin also digs into the tariff story, the burrito discourse, a record 16% drop in lettuce prices, and the Fed's tough spot between stubborn inflation and slowing employment growth.

Subscribe on YouTube 👉 https://youtube.com/platypuseconomics
Subscribe on Substack 👉 https://newsletter.platypuseconomics.com

Follow on Social Media @PlatypusEconomics and @JustinWolfers

The newest inflation report is out, and Justin Wolfers walks you through what actually matters. Annual inflation is running at 3.4% &mdash; well above what the Fed wants, and high enough to explain why the checkout line still feels uncomfortable. Core inflation, which strips out food and energy to predict where prices are headed, sits at a better &mdash; but still high &mdash; 2.5%. July's monthly numbers came in almost exactly as economists expected, which is why the report is less "news" than confirmation: prices are still rising quickly, just about the way everyone thought they would.
Here's what it means for you. Prices are outpacing wages, so real (inflation-adjusted) pay has fallen over the past year &mdash; the average paycheck buys less than it did twelve months ago. Energy is the main culprit: gas is up 25% over the year, diesel 39%, and airfares have shot up on the back of it. If you're flying anytime soon, that ticket is a whole lot pricier. Justin also digs into the tariff story, the burrito discourse, a record 16% drop in lettuce prices, and the Fed's tough spot between stubborn inflation and slowing employment growth.
Subscribe on YouTube 👉 https://youtube.com/platypuseconomics Subscribe on Substack 👉 https://newsletter.platypuseconomics.com
Follow on Social Media @PlatypusEconomics and @JustinWolfers

From world events to everyday decisions, economics explains it all. Platypus Economics makes it clear, useful, and actually fun.

From world events to everyday decisions, economics explains it all. Platypus Economics makes it clear, useful, and actually fun.

Platypus Economics with Justin Wolfers

Inflation Is Still High. Just As We Thought. | Diving In

https://api.omny.fm/orgs/e73c998e-6e60-432f-8610-ae210140c5b1/clips/d497d8f4-2a4c-4125-8ad6-b4a4010b2e57/transcript