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Shopping in a Whole Foods Market supermarket in New York on Monday, August 12, 2024.
A closer look: Annual core inflation — which strips out volatile energy and food costs — fell from from 3.3 to 3.2 since June, suggesting pandemic-era supply constraints continue to ease. Grocery prices rose only 1.1% and gas prices fell 2.2% over the past year.
These trends mirror what’s happening north of the border, where falling inflation allowed the Bank of Canada to begin cutting rates this summer for the first time in four years.
The political impact: Falling inflation should in principle be good news for American Democrats and Canadian Liberals, since incumbents are typically held to account for economic perceptions. That said, Justin Trudeau’s polling numbers are so bad right now it’s hard to see what, if anything, could temper the negative vibes around him.
For Kamala Harris, meanwhile, the numbers provide a fresh tailwind as she flies into North Carolina for her economic policy rollout speech on Friday.
