🚨 America Inflation Wahala: E Go Last Reach 2024? 🚨
⬇️ Pidgin ⬇️ ⬇️ Black American Slang ⬇️ English
📉 One of di biggest surprises for 2023 na how quick inflation take cool down. As we dey look di mata, e dey give us hints whether dis go continue for 2024. Prices don rise well well for 2021 and 2022, wey make life hard for American families and affect President Biden approval rating. But for late 2023, inflation temperature come down, wey pass wetin economists bin expect, and e dey bring hope say economy go land softly.
💰 Now, di question wey everybody dey ask na whether dis good news fit last till 2024. As people dey try guess wetin go happen next, many dey look closely where dis recent slowdown dey come from. Di details show say weaker goods prices — things like clothes and used cars — and di cost for services like travel don help cool di heat. Even as rent increases dey take time to reduce.
🔍 Di trends we dey see suggest say we fit see more disinflation, but some small risks still dey. Below na di big changes to watch out for.
🤔 So, wetin we dey talk about when we talk about disinflation? Wetin dey happen for America now na wetin economists dey call “disinflation”: when you compare prices today with prices one year ago, di pace of increase don slow down well well. For di peak for summer of 2022, consumer prices dey increase at a yearly pace of 9.1 percent. As of November, e drop to just 3.1 percent. Disinflation no mean say prices dey fall outright; e just mean say price levels never reverse di big jump wey happen after di pandemic. E mean say things like rent, car repairs, and groceries still cost pass as e be for 2019. (Wages sef don dey rise, and dey pick up more quick pass prices for recent months.) So, prices still dey climb, just no be as fast.
💵 Wetin be di inflation rate wey officials dey aim for? Di Federal Reserve, wey dey responsible for trying to restore price stability, wan return price increases to a slow and steady pace wey fit sustain economy over time. Like other central banks around di world, di Fed define dat as a 2 percent annual inflation rate.
📊 Wetin cause di 2023 disinflation surprise? Inflation shock economists for 2021 and 2022 by first shooting up sharply and then remaining high. But starting from mid-2023, e begin to go di opposite direction, falling faster than many predict. For middle of last year, Fed officials expect say one key measure of inflation — di Personal Consumption Expenditures measure — go end di year at 3.2 percent. As of di latest data wey release for November, e don fade to a more modest 2.6 percent. Di more timely Consumer Price Index measure sef don dey come down swiftly.
✈️ Di surprisingly quick cooldown start as travel prices begin to go down, na Omair Sharif, founder of Inflation Insights, talk am. For airfares, na supply be di story. Demand still dey strong, but after years of limited capacity, available flights and seats don catch up. Dat one combine with cheaper jet fuel to send fares lower. And while other travel-related service prices like hotel room rates jump rapidly for 2022, dem dey increase much more slowly by mid-2023.
🚗 Used car deflation don come back. Used vehicle prices fall for 2023. New car prices still dey climb, but more slowly than for 2022.
🚢 Di relief for inflation come partly from improvements for supply side. For years, tangled transit routes, expensive shipping fares, and limited supply of workers don restrict how many products and services companies fit offer. But by late last year, shipping routes dey operate normally, pilots and flight crews dey for skies, and car companies dey churn out new vehicles. “Di supply side dey work,” na wetin Skanda Amarnath, executive director for di worker-focused research group Employ America, talk.
🏠 One source of disinflation wey people don dey wait for never show up fully na slowdown for rental inflation. Data wey dey track new rents jump early for pandemic but then slow down sharply. Plenty economists think say dis pullback go eventually show for official inflation data as renters renew dia leases or start new ones — but di process dey take time.
🏡 Housing inflation still dey go faster than normal. Rent increases and one measure wey dey approximate di cost of owned housing both dey slow down only gradually. Dis na wetin we dey see for di year-over-year percentage change for Consumer Price Index categories. 📉🚢🚗🏠🏡🔍💰✈️
NOW IN BLACK AMERICAN SLANG
🚨 Is America’s Cool Down on Inflation Gonna Stick in 2024? 🚨
📉 Yo, peep this: In 2023, one of the biggest surprises was how quick inflation chilled out. Diving into the details, we’re tryna see if this ease-up on inflation is gonna roll through 2024. Back in 2021 and 2022, prices were climbing like crazy, messing with folks’ budgets and hitting President Biden’s approval. But towards the end of 2023, inflation started to cool off, quicker than what the number crunchers had on their radar, sparking hopes for a smooth economic vibe.
💰 Now, everybody’s wondering: Can this good inflation news keep up in 2024? As the forecasters are tryna figure out the next move, they’re eyeing where this recent slowdown came from. Looks like a mix of lower prices on goods – stuff like threads and used rides – along with services like travel costs cooling down helped put the brakes on inflation, even though rent hikes are still around.
🔍 These trends suggest we might see more of this disinflation, but there are still a few things to watch out for. Here’s the lowdown on what’s up with disinflation.
🤔 Alright, so what’s “disinflation”? What’s happening in America right now is what the money minds call “disinflation”: comparing today’s prices with last year’s, the rate of increase has slowed down a lot. In summer 2022, consumer prices were jumping at a yearly pace of 9.1 percent. Fast forward to November, and it’s slowed down to just 3.1 percent. But check it, disinflation doesn’t mean prices are dropping for real. They just ain’t spiking like they did post-pandemic. This means stuff like rent, car fixes, and groceries are still pricier than they were back in 2019. (But hey, wages have been going up too, catching up with prices lately.) So, prices are still on the up, just not racing like before.
💵 What’s the ideal inflation rate? The Federal Reserve, the crew responsible for balancing price stability, wants to bring price increases to a slow and steady pace that’s cool for a sustainable economy over time. They’re aiming for a 2 percent annual inflation rate, just like other central banks worldwide.
📊 So what’s up with the 2023 disinflation surprise? Inflation had economists tripping in 2021 and 2022, first blasting up and then staying up. But come mid-2023, it flipped, dropping faster than most predictions. Mid-last year, Fed peeps were thinking a key inflation measure – the Personal Consumption Expenditures measure – would end the year at 3.2 percent. But by November, it mellowed to a chill 2.6 percent. The Consumer Price Index, always quick with the updates, has been easing down too.
✈️ This cool-down really kicked off when travel prices started easing up, says Omair Sharif from Inflation Insights. For airfares, the game was all about supply. Demand was still popping, but the number of available flights and seats finally caught up, mixed with cheaper jet fuel, leading to lower fares. And while other travel-related service costs, like hotel rates, had shot up in 2022, they were rising much slower by mid-2023.
🚗 The next big shift was in goods prices. After a two-year hike, prices for stuff like furniture, apparel, and used cars started to level out or even drop. The amount of disinflation coming from goods was a bit of a shocker, said Matthew Luzzetti, chief U.S. economist at Deutsche Bank. It was dope to see it happening across the board.
🚢 The improvement in inflation was partly thanks to better supply chain management. For years, tangled transport routes, pricey shipping, and a limited workforce had capped how many products and services companies could offer. But by late last year, shipping was running smoother, pilots were back in the air, and car companies were producing more vehicles. “The supply side is at work,” said Skanda Amarnath from Employ America.
🏠 One area where disinflation is still waiting to make a grand entrance is in rental inflation. Data tracking new rents soared early in the pandemic but then slowed down significantly. Many economists believe this decrease will eventually show up in official inflation data as renters renew leases or start new ones, but it’s taking its sweet time.
🏡 Housing inflation, though, remains quicker than usual. Rent hikes and a measure approximating the cost of owned housing are both taking their time to wind down. This is evident in the year-over-year percentage change in Consumer Price Index categories. 📉🚢🚗🏠🏡🔍
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NOW IN ENGLISH
🚨 Will America’s Inflation Relief Continue Through 2024? 🚨
📉 In a surprising economic twist for 2023, inflation in America took a backseat much quicker than anticipated. Peering into this trend gives us clues about whether this chill vibe on inflation will roll into 2024. Prices had been on a steep climb in 2021 and 2022, straining budgets and denting President Biden’s approval numbers. However, toward the end of 2023, inflation took a chill pill, cooling off faster than many economists had guessed and fueling hopes for a smooth economic ride.
💰 Now, the big question on everyone’s mind is whether this good news on inflation will stick around in 2024. As predictors try to map out what’s next, a deep dive into the recent slowdown shows us where it’s coming from. Looks like a mix of dropping goods prices – think apparel and used cars – and slowing service costs, including travel, are behind this cool-down, even though rent hikes are still hanging around.
🔍 This combination suggests we might see more of this disinflation, but there are a couple of sticky points to watch out for. Let’s break down what’s up with this disinflation talk.
🤔 What exactly is “disinflation”? What we’re seeing in the States right now is what the money heads call “disinflation”: comparing prices now to a year ago, the increase rate has slowed down big time. Peak moment was summer 2022, with a yearly consumer price increase of 9.1 percent. Fast forward to November, and it’s dialed down to just 3.1 percent. But, hey, disinflation doesn’t mean prices are dropping outright. They just aren’t spiking like they did right after the pandemic. This means stuff like rent, car repairs, and groceries are still pricier than they were in 2019. (On the flip side, wages have been climbing, catching up with prices in recent months.) So, yeah, prices are still going up, just not at warp speed.
💵 What’s the ideal inflation rate, according to the bigwigs? The Federal Reserve, tasked with balancing price stability, is shooting for a slow and steady inflation rate that vibes with a sustainable economy over time. Like other central banks around the globe, they’re aiming for a 2 percent annual inflation rate.
📊 So, what sparked the 2023 disinflation surprise? Inflation had economists doing double takes in 2021 and 2022, first skyrocketing and then staying high. But mid-2023, it flipped, dropping faster than most predictions. Around mid-last year, Fed officials were betting on a key inflation measure – the Personal Consumption Expenditures measure – to close out the year at 3.2 percent. But the latest data by November showed it cooling off to a more chill 2.6 percent. The Consumer Price Index, always quick to update, has been sliding down too.
✈️ This cool-down really kicked off when travel prices started easing up, according to Omair Sharif from Inflation Insights. Airfares, for example, saw a shift in supply. Demand was still strong, but the number of available flights and seats finally caught up, combined with cheaper jet fuel, leading to lower fares. And while other travel-related service costs, like hotel rates, had shot up in 2022, they were rising much slower by mid-2023.
🚗 The next big change was in goods prices. After a two-year spike, prices for products like furniture, apparel, and used cars started to level out or even drop. The amount of disinflation coming from goods was a bit of a shocker, said Matthew Luzzetti, chief U.S. economist at Deutsche Bank. It was encouraging to see it happening across the board.
🚢 The improvement in inflation was partly thanks to better supply chain management. For years, tangled transport routes, costly shipping, and a limited workforce had capped how many products and services companies could offer. But by late last year, shipping was running smoother, pilots were back in the air, and car companies were producing more vehicles. “The supply side is at work,” said Skanda Amarnath from Employ America.
🏠 One area where disinflation is still waiting to make a grand entrance is in rental inflation. Data tracking new rents soared early in the pandemic but then slowed down significantly. Many economists believe this decrease will eventually show up in official inflation data as renters renew leases or start new ones, but it’s taking its sweet time.
🏡 Housing inflation, though, remains quicker than usual. Rent hikes and a measure approximating the cost of owned housing are both taking their time to wind down. This is evident in the year-over-year percentage change in Consumer Price Index categories. 📉🚢🚗🏠
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