Consumer price index (CPI)

In a week filled with news about now-former Nvidia CEO Jensen Huang and the ensuing fallout in the AI industry, new inflation data also came out. Both events may have implications for the broader economy.

“I think nobody can substitute for Bureau of Labor Statistics. Our goal is is to be a supplement to them,” said Anna Wong at Bloomberg Economics. “The private sector can serve as a push for more innovation.”

The latest CPI report shows headline inflation up 0.4% from September, and core inflation, excluding food and energy, rose 0.3% month-over-month.

The price of diesel, competition, and technological innovation are among the factors tamping down inflation in some sectors of this economy.

The net result is that the average American household’s buying power has dwindled by 0.1% over the past year.

Even with the latest decline in inflation, real earnings have stagnated over the past year.

The surprisingly strong CPI numbers mean the Fed is likely to hold interest rates steady at its next meeting in July.

It could be telling us that price increases have peaked.

The consumer price index rose 4.2% in May, driven largely by energy costs that are up about 24% year over year.

With the consumer price index running at 3.8% — and expected to rise further when new data drops Wednesday — purchasing power is eroding.