[Music] New economic data out this morning Wholesale prices fell half a percent Last month signaling a possible ease in Inflation a major factor in the drop in The producer price index was energy There was uh a more than 15% decline in Gas prices so joining me now is Greg Rob He's a senior reporter and economics Editor for market watch so thanks for Joining us it looks like all things are Pointing in the in the right direction Each each report we get out suggests the Slowing of uh inflation help us break Down what the numbers Mean the big headline from the numbers Over the last two days that we've gotten On inflation is that this idea that the Economy can have a soft Landing is alive And well and that's really good news and That's why uh the stock market is Reacting it means that inflation can Come down without the Federal Reserve Really having to slam the breaks on the Economy and kind of stop growth so that It looks like we can you know kind of Maybe avoid a recession so this report Talks about what the producers are Paying um but that doesn't always Necessarily mean that they pass it on to The consumers especially if they think The consumers are willing to pay more uh We're heading into the holiday season Could that have an impact on the way
Inflation looks say a month from Now I don't think so I think holiday Sales are kind of a different kettle of Fish I think it's going to be hard for Retailers especially big box retailers This season because the cost of living Has gone up for so many Americans and Americans are having to cut back at the Same time though they do want to spend On you know presents for people it seems You know coming out of the pandemic so What they're going to buy and what They're not going to buy I think it's Going to be a real headache for Big Box Retailers so um but I I don't think the It'll boost inflation um that's kind of A whole that's a thing about how strong The consumer is which is another thing That the FED is looking at and everyone Is looking at right well we had the Consumer Price Index come out uh Yesterday and you mentioned that stock Market was really liking what they saw There investors were JP Morgan Chase CEO Jamie Diamond said yesterday that he's Afraid that inflation may not go away That quickly and that investors may have Been overreacting to the CPI um is it Too early to tell where inflation is Headed to me it seems to be very slowly Heading in the right direction not not Quickly but at a good Pace yeah we had a big jump of inflation Over the last 18 months and the the way
Inflation works it it wasn't going to Keep going at that remarkable speed that We saw but it is kind of inching higher I think Jamie Diamond has a good point That some economists have made the genie Is still out of the bottle on inflation We haven't really solved it core Consumer prices which the FED really Pays attention to are rising at a 4% Rate the FED wants to get that down to a 2% rate so there is some irrational Exuberance around but because we're so Worried about this recession idea that Somehow if a recession can get taken off The table and that the economy can Continue to grow that's pretty good news All right I like good news uh Greg Rob Thank you
