In the second quarter, GDP fell at an annual rate of 0.9 percent. This was the second consecutive quarter that we saw the economy contract. So, before I discuss how an official recession is determined and whether or not we are in one, I’d like to take a deeper look at the factors that contributed to a shrinking in the economy for the most recent quarter. 

Discussing inflation may be getting a little redundant, I know, but it continues to be front and center for both consumers and investors alike. The Labor Department released inflation data for May, which ticked up by 1% for the month and 8.6% over the last year. This is the highest it’s been in roughly 40 years.