By Kara Greenberg, Editor

What's Happening Today

Inflation continues to make the prices of most goods and services more expensive, and next week's update on the Consumer Price Index is expected to show the rate of inflation lingering near multi-decade highs. However, you could see discounts when you go shopping, as more retailers resort to price cuts to clear excess inventories.

A survey of small business owners by the National Federation of Independent Business (NFIB) found that while companies in other industries are still raising prices to keep up with high material costs, retailers are continuing to struggle with excess inventories. None of the retailers reported their inventory levels were "too low" in July, compared to 2% across small businesses more broadly. Big retailers like Target and Walmart had warned investors in their latest quarterly earnings reports that it could take a couple of quarters to clear inventories, and that they are using discounts to appeal to inflation-weary shoppers and clear items off shelves. Small businesses are likely to follow suit.

And if you're looking for a job, nearly half (49%) of small business owners surveyed by the NFIB reported job openings they could not fill, as of August. Also, some delivery and logistics companies are already announcing seasonal jobs in anticipation of a busy holiday season. UPS said it would hire more than 100,000 holiday workers this year, in line with last year.

In another sign of strength for the labor market, the Labor Department also reported the number of people filing for state unemployment benefits for the first time declined more than expected by 6,000 to 222,000 for the week ending September 3. Economists had expected an increase.

- Kara

Programming Note: You may have noticed a new contributor to The Balance Today. Kristin will be getting a little help from team members over the next few weeks, so stay tuned, and let us know what you think!

Editors' Picks

Fed's Powell Affirms Need to Act Strongly to Fight Inflation (Wall Street Journal)

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Climate Change Could Worsen Supply Chain Turmoil (New York Times)

US Gasoline Prices to Keep Falling as Refiners Keep Making Other Products (Reuters)

Bundling Car and Home Insurance: Pros and Cons (The Balance)

How Does a Roth IRA Work? (The Balance)

The ABCs of Money: A Kid-Friendly Guide to Financial Basics (The Balance)

Term of the Day

Savings Account

A savings account is a basic type of bank account that allows you to deposit money. You can withdraw your money from it, and most banks pay you compound interest on the balance of these accounts. The purpose of a savings account is to provide a safe place to stash the money you're not using for regular expenditures.

Many banks, credit unions, and other financial institutions offer savings accounts in addition to other accounts. You might even find some savings accounts that offer higher interest rates than others.

Off the Charts

Exports are products or services that are produced or manufactured in one country, and sold in another, and help a nation grow. As a trading component, they assume importance in diplomatic and foreign policies. A country has a trade surplus when it exports goods more than it imports. It has a trade deficit when it imports more than it exports.