What Do The Latest Inflation Numbers Mean For The Average American?
- Economy growing at 5% due to Trump policies, but tariffs and spending are concerns.
- Credit card debt over $1.2 trillion, higher-income Americans falling behind on payments.
- Market not overly concerned about inflation report, looking at earnings and AI impact instead.
What Do The Latest Inflation Numbers Mean For The Average American?
In this episode of Tony Katz Today, Tony Katz is joined by Dr. Matt Will, an economist from the University of Indianapolis, to discuss the latest inflation numbers and what they mean for the economy. With the Consumer Price Index (CPI) coming in at 2.4% annually, it’s tempting to think that inflation is under control. But Tony’s not buying it.
“I refuse to accept three point six percent inflation,” Tony says. “It’s still too high.” He’s not alone in his skepticism, as Dr. Will agrees that the core inflation rate, which excludes food and energy prices, is still elevated at 3.6%. The producer price index (PPI) is also a concern, coming in at 6%.
So, what’s behind these numbers? Dr. Will points out that the economy is growing at almost 5% due to President Trump’s policies, including the rescinding of the Obama-era Endangerment Finding, which was a major contributor to inflation. “Good Trump is growing the economy,” Tony says, “but we still have to deal with the tariffs and government spending.”
The market’s reaction to the inflation numbers is telling. “The market’s not paying a lot of attention to this report,” Tony notes, “because it didn’t move the needle.” Instead, investors are looking at other indicators, like earnings and the impact of AI on the economy. “We’re gonna move along and look at other things,” Tony says.
But what does this mean for the average American? Dr. Will points out that credit card debt is now over $1.2 trillion, and Americans with higher incomes are starting to fall behind on payments. “This is not a ticking time bomb,” he says, “but it’s a problem.” Tony agrees, emphasizing the need for patience and caution.
The conversation also touches on the recent EPA announcement, which Tony sees as a positive step towards deregulation. “This is a fantastic move,” he says, “but we still have to deal with the tariffs and government spending.” Dr. Will notes that the market is a realist, looking at the data and seeing both the good and the bad.
As the conversation comes to a close, Tony emphasizes the importance of staying focused on the bigger picture. “We’re doing all the right things,” he says, “but we just need to be patient.” Dr. Will agrees, pointing out that the economy is complex and that progress takes time.
If you’re interested in understanding the state of the economy and what it means for your wallet, this episode is a must-listen. Tune in to hear Tony Katz and Dr. Matt Will break down the numbers and offer insights on what’s next for the economy.
Listen to the discussion “What Do The Latest Inflation Numbers Mean For The Average American?” in full here:
Listen to the show in full here:
Watch the show here:
Archived episodes here:
ABOUT THE SHOW
Tony Katz Today airs from 12-3pm ET on 93.1 WIBC/Indianapolis
What are we talking about? Politics, breaking news, political theory, art, the markets, food, libations and whatever else may come to mind.
PLEASE SUBSCRIBE TO THE PODCAST
Tony Katz Today on Apple Podcasts
