Surprise price jumps, Sen. Kamala Harris as VP nominee: What today's news means for your money

Democratic presidential candidate Joe Biden announced Sen. Kamala Harris as his VP pick, consumer prices jumped unexpectedly in July, and other news that can affect your finances.

Democratic 2020 U.S. presidential candidate and U.S. Senator Kamala Harris (D-CA), with her husband Douglas Emhoff at her side, greets audience members during a campaign stop at Keene State College in Keene, New Hampshire, April 23, 2019.
Brian Snyder | Reuters

The Biden-Harris Democratic ticket and inflation are making news today. Here's how it could affect your money:

Joe Biden picks Kamala Harris as his running mate

Democratic presidential candidate Joe Biden announced Tuesday that his running mate will be California Senator Kamala Harris. She's the first woman of color to appear on a major party ticket.

During her presidential bid last year, Harris pitched what she called "the most aggressive equal pay proposal in history," aiming to make companies accountable for closing the wage gap. She has also spoken out on income inequality, raising the minimum wage, and expanding paid leave, among other issues. 

Wall Street executives cheered Biden's pick. While politics and elections can cause short-term turbulence in the market, look long term and you'll see the market tends to be resilient no matter which party is in office: Since 1928, only three presidents have seen the market decline over their tenure. 

Consumer prices are climbing faster than expected

The Labor Department said Wednesday that its consumer price index (CPI) rose 0.6% in July, about twice as much as economists had expected. Over the past year, prices are up about 1%.

You may notice some of those changes in your budget: Between June and July, grocery prices fell 1.1%, while gas prices increased 5.6%. 

Stocks shrugged off the jump in inflation, with strategists pointing to it as a sign of economic recovery

What is deflation and how does it affect your money?

Video by Stephen Parkhurst

Words you've heard: Consumer price index (CPI)

The Consumer Price Index (CPI) measures the average change over time in prices paid by consumers for common goods and services. It's one of three primary measures of inflation in the U.S.

Monthly CPI reports have the potential to move markets. Investors watch this metric to gauge what the Federal Reserve might do, because central bankers may boost interest rates to keep inflation in check.

When it comes to your personal finances, inflation can affect everything from the prices you pay to how much you earn. It can also cut into the value of your savings and give you more incentive to keep investing for long-term goals.

Although the daily news can have an impact on your wallet, remember to take a long-term outlook when it comes to decisions on spending, saving, and investing.

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