> ## Content Index > Fetch the complete content index at: https://keep-and-grow.ghost.io/llms.txt > Use this file to discover other available public pages before exploring further. # Prices cooled to 3.4%. Why your paycheck still lost the race. - URL: https://keep-and-grow.ghost.io/a-former-bookkeeper-just-sent-me-this-money-flowing-out-faster-than-it-comes-in/ - Published: 2026-08-13T15:26:24.000Z - Updated: 2026-08-13T15:26:24.000Z - Author: Ray Caldwell | ![](https://storage.ghost.io/c/45/25/4525a9ae-12a6-4c7a-823e-c215b2ca9eb5/content/images/2026/08/logo-1-icon.png)![](https://storage.ghost.io/c/45/25/4525a9ae-12a6-4c7a-823e-c215b2ca9eb5/content/images/2026/08/logo-1-text.png)Thursday · August 13, 2026 · № 16 · with Ray![](https://storage.ghost.io/c/45/25/4525a9ae-12a6-4c7a-823e-c215b2ca9eb5/content/images/2026/08/divider-1.png) | | 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| | Above the FoldInflation came in right on the mark, and markets exhaledThe number the whole market had been bracing for landed Wednesday, and it landed quietly. July inflation ran at 3.4 percent over the past year, a shade below June's 3.5, exactly what forecasters had penciled in. Strip out food and energy and the core rate eased to 2.5 percent. Nothing alarming, nothing that hints a rate hike is on the way. Stocks took the calm in stride and climbed back within reach of their records.![](https://storage.ghost.io/c/45/25/4525a9ae-12a6-4c7a-823e-c215b2ca9eb5/content/images/2026/08/Grocery-cart.png)The catch worth keeping in view is simple. In line with expectations is not the same as cheap. Prices still rose, just more slowly, and they are still climbing a touch faster than the average paycheck, which grew about 3.2 percent. So the gap between what a cart of groceries costs and what a week of work brings home has not closed, it has only stopped widening so fast. I read a tame report like this one as good news with an asterisk: the fever is breaking, but the patient is not back to full strength.From WashingtonStudent-loan interest is running again, and a discount is on the tableA change that slipped past a lot of people took effect this month. Interest is once again piling up on the loans of roughly eight million borrowers who had sat in a payment pause tied to the old SAVE plan, after the courts struck it down. If that describes you or someone in the family, the balance is no longer frozen.The part worth acting on is a new [one percent rate cut for signing up for autopay](https://www.ed.gov/about/news/press-release/us-department-of-education-announces-student-loan-interest-rate-reduction?ref=keep-and-grow.ghost.io), open to borrowers who enroll by the end of September and lasting into 2028\. On a large balance that is real money over the years, and it is about the only free discount in the whole system right now. Two new repayment plans opened over the summer as well. I would not let a busy August be the reason someone in the house misses a deadline that quietly lowers their rate.THE LEDGERWednesday's close · markets![](https://storage.ghost.io/c/45/25/4525a9ae-12a6-4c7a-823e-c215b2ca9eb5/content/images/2026/08/logo-1-icon.png)S&P 5007,748.50▲ 0.26%Nasdaq26,588.49▲ 0.54%Dow Jones53,770.27▼ 0.04%10-yr Treasury4.68%easedGold$4,395 / oznear recordWTI crude$87.00 / bbl▲ 4.6%US Dollar (DXY)99.86flatSource: [Yahoo Finance](https://finance.yahoo.com/quote/%5EGSPC/?ref=keep-and-grow.ghost.io) · [U.S. Treasury](https://home.treasury.gov/policy-issues/financing-the-government/interest-rate-statistics?ref=keep-and-grow.ghost.io) (10-yr)Tomorrow TodayA quiet run of new medicines, including one that restores hearing![](https://storage.ghost.io/c/45/25/4525a9ae-12a6-4c7a-823e-c215b2ca9eb5/content/images/2026/08/Biotech-lab.png)While the market stared at inflation, the Food and Drug Administration has been clearing an unusually busy run of new treatments this summer, with more decisions due between now and the end of September. Among them is [a first-of-its-kind gene therapy](https://www.fda.gov/drugs/news-events-human-drugs/whats-new-related-drugs?ref=keep-and-grow.ghost.io) that can restore hearing for children born with a particular genetic defect, alongside fresh drugs for melanoma and for narcolepsy.The science is genuinely moving, and that is the good part. The harder part is the price tag: a gene therapy can run into the millions of dollars for a single course, which lands on insurers, employers, and in time on premiums. For an investor with a biotech fund, a wave of approvals is a tailwind, even though the individual winners are hard to pick. I find the medicine hopeful and the economics of it a puzzle no one has fully solved.The FiveFive things worth a minute1**The core number cooled too.** Stripping out food and energy, prices rose 2.5 percent over the year, a hair below June and a step the right way.2**AI names led the climb.** The rally leaned on data-center stocks like CoreWeave and Super Micro as inflation worries eased.3**The Dow sat it out.** While the S&P and Nasdaq rose, the Dow finished flat, a reminder the big averages do not always move together.4**Oil jumped again.** WTI crude climbed near $87 a barrel on renewed Middle East tension, and gas has already ticked back up.5**Gold stayed hot.** The metal held near a record just under $4,400 an ounce as hopes for a fall rate cut lingered.THE MONEY METERWhat your money is up against![](https://storage.ghost.io/c/45/25/4525a9ae-12a6-4c7a-823e-c215b2ca9eb5/content/images/2026/08/logo-1-icon.png)Fed funds rate3.50–3.75%held Jul 2930-yr mortgage6.69%Freddie · Aug 6Gas (nat'l avg)$4.07 / galfirmerInflation (CPI, yr/yr)3.4%BLS · JulyRent (nat'l avg)$2,000 / moZillow · AugSource: [Federal Reserve](https://www.federalreserve.gov/monetarypolicy/fomccalendars.htm) · [Freddie Mac](https://www.freddiemac.com/pmms?ref=keep-and-grow.ghost.io) · [AAA](https://gasprices.aaa.com/?ref=keep-and-grow.ghost.io) · [BLS](https://www.bls.gov/cpi/?ref=keep-and-grow.ghost.io) · [Zillow](https://www.zillow.com/rental-manager/market-trends/united-states/?ref=keep-and-grow.ghost.io)The Long ViewSlower is not the same as cheaperA good inflation report is easy to misread. The headlines make it a victory lap, but prices in July were still higher than in June, and higher than a year ago by 3.4 percent. What improved is the speed, not the direction. The leak in the boat is smaller. The boat is still taking on water, just slowly enough now to bail.That distinction is not academic when you run a household. A slower climb still eats savings and still stretches a fixed income, and the same dollar still buys a little less next month than this one. I kept books through the early 1980s, when a dollar lost its footing every few months, and the families who came through it best were the boring ones who adjusted a little at a time. The right response now is neither a celebration nor a panic. It is to keep doing the dull, effective things: watch the categories still rising fastest, hold your cash where it earns something, and treat every raise as a chance to widen the space between what you make and what you spend. I have never seen a headline pay a grocery bill. The habits do.Mind what you keep.— Ray![Ray](https://storage.ghost.io/c/45/25/4525a9ae-12a6-4c7a-823e-c215b2ca9eb5/content/images/2026/08/sign-1.png) | | ![](https://storage.ghost.io/c/45/25/4525a9ae-12a6-4c7a-823e-c215b2ca9eb5/content/images/2026/08/divider-1.png)![](https://storage.ghost.io/c/45/25/4525a9ae-12a6-4c7a-823e-c215b2ca9eb5/content/images/2026/08/logo-1-icon.png)![](https://storage.ghost.io/c/45/25/4525a9ae-12a6-4c7a-823e-c215b2ca9eb5/content/images/2026/08/logo-1-text.png)It's not what you make — it's what you keep. |