Cutting government spending and calling off the trade war would be steps in the right direction.
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MorethanoneissueboostedDonaldTrumpaheadofmainrivalKamalaHarrisandbackintotheWhiteHouse,butinflationwaskeyamongthem.Afederalspendingspreediminishedthepurchasingpowerofthedollarandsentpriceshigher,inducingstickershockamongAmericansthatinfluencedtheirchoicesonElectionDay.Nowwe’reseeingindicationsthatinflationisback,andthenewadministrationwillhavetoliveuptopromisestobringthecostoflivingundercontrol.
PricesRiseFasterThanExpectedThisweek,theConsumerPriceIndex(CPI)cameinhigherthanexpected.“Theallitemsindexrose3.0percentforthe12monthsendingJanuary,afterrising2.9percentoverthe12monthsendingDecember,”accordingtothepressreleasefromtheBureauofLaborStatistics.
WritingforTheNewYorkTimes,JeannaSmialeknotedthatinflation“showedworryingstayingpoweraftervolatilefoodandfuelcostswerestrippedout—areminderthatbringingpriceincreasesundercontrolremainsafraught,bumpyprocess.”
Adaylater,theProd
