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INFLATION • Eight-thirty this morning
Wages Grew 3.2%. Prices Are Forecast at 3.4%.
July CPI lands at 8:30 a.m. Economists expect 3.4% annually, down from 3.5% in June. Wage growth came in at 3.2% on Friday.
That gap is the whole story, and it barely gets reported. Even the expected outcome leaves prices rising faster than pay — which is what the word stagflation describes when the job market is also weakening. July payrolls contracted by 23,000.
Core CPI, which strips out food and energy, is forecast at plus 0.2% monthly and 2.5% annually. That would be down from 2.6%, but only because it is measured against a high reading from last July.

Annual growth, latest readings.
Here’s why it lands on your desk: if you are living on a fixed income or drawing down savings, this gap is the number that matters more than any index level. It compounds quietly and nobody sends you a statement about it.
Source: NBC News / Dow Jones poll / BLS