SEMO economist Yaskewich on inflation easing

David Yaskewich, economist and Southeast Missouri State University department chairman, finds much to like in last week's news from the U.S. Department of Labor.

David Yaskewich

David Yaskewich

On Wednesday, July 12, the government reported consumer prices were up just 3% from a year ago, the smallest annual increase since March 2021.

"If you make a comparison to a year ago when inflation peaked at 9.1%, to be at 3% is good news by any measure," Yaskewich said, opining the decline in inflation is "obvious, memorable and positive" for household budgets. "At least it is relief because prices are still going up but at a slower pace."

Yaskewich, who leads SEMO's Accounting, Economics and Finance Department, said the Federal Reserve remains intent on reaching a 2% rate of inflation.

"That's the work that has yet to be done, so I don't think last week's good news is going to keep the Fed from raising interest rates again this month," he said.

Federal Reserve Board, led by chairman Jerome Powell, is due to meet again Thursday, July 27, and Friday, July 28, amid widespread speculation rates will be increased another quarter of a point.

The Associated Press is reporting 12 of the Fed's 18 policymakers indicated they envision at least two more rate hikes this year, with four predicting one additional increase. Only two officials forecast the central bank will keep its key rate at its current level of 5.1% through year's end.

Bureau of Labor Statistics also reported Wednesday that U.S. wages, for the moment, are rising faster than inflation.

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