Temporarily Unexpected

Consumer Prices Surge Higher Than Expected, Up 8.2%: Core CPI, which strips out volatile food and energy prices, rose 6.6 percent compared with a year ago. That is the highest rate of core inflation since 1981, surpassing the recent 6.4 percent highs hit in February and March. For the month, core prices were up 0.6 percent.

“Ouch”

11 Replies to “Temporarily Unexpected”

  1. How does one compare today’s number to the 1981 number, given that today’s number is created using a different formula? One which the government puts their thumb on the scale to lower the number…

  2. 1) there is no threat of inflation due to the government borrowing then “spending” a trillion dollars
    2) there is no inflation, like we said
    3) there is some inflation, but not everywhere, and its not bad, so point 1 stands, please ignore point 2
    4) there is some inflation in some minor areas such as fuel, housing and food, but its manageable
    5) its only for a short time, just like two weeks to flatten the COVID curve, remember then?
    6) inflation is actually good, Colbert says so, and who would know better than a celebrity millionaire?
    7) the government has a plan for inflation if it ever really becomes a for real problem for real people
    8) you’ll love wage and price controls…
    9) its corporate greed that somehow didn’t exist two years ago, just started overnight
    10) did we mention the inflation that isn’t happening, but would be great, is Putin’s fault?
    11) overturning Roe will damage the economy
    12) CTRL/H inflation/stagflation
    13) CTRL/H stagflation/recession
    13) CTRL/H recession/New Great Depression

  3. Mm the people I feel the most for are the ones who are overwhelmed on housing. You think interest rates are bad now. Wait until they hit 7 % or so. Variable and floating are going to be slaughtered. One the few who owes nothing, couple months of food and some gold in the safety deposit box. Good luck

  4. The really scary part is that food inflation, and availability, problems are only starting to be felt. The lag time between planting, harvesting, transportation to market is significant. Look out in North America and prepare to starve in the third world.

    1. Yes – for evidence of this look at the individual line items in the PPI. Here are the three big ones.

      Fresh & Dry Vegetables +15.7%
      Grains +10.7%
      Eggs for fresh use +16.7%

      And those aren’t annual rates – those are MONTHLY. At those rates, you get prices doubling in as little as six months, quadrupling within a year.

      Way to go, Joe. You too, Justin.

  5. Well … my consumer behavior is most likely the same as all other blue collar middle Americans. I have cut out ALL the foods whose prices have spiked way the hell out of reason. Same with every other product. I ONLY shop sales. My (universal) behavior will have only ONE predictable result … a deep, decade-long, Recession … if not Depression.

    The intentional LIES and DECEPTION by the Democrats … should … tell you everything you need to know to clean our political house of these purely EVIL people. But sadly, the Dem’s. have convinced a large proportion of the American people that they … “care”. As did Stalin and Mao. Yes, mountains of skulls are in our near future.

      1. Perfect! Absolutely perfect! A forgotten gem.

        See, I like more than just classic rock … 😉

  6. This is just a part of the big picture – but its a big part that all the talking heads ignore

    If you look at when inflation took off, its right when Obiden was sworn in as President.

    His first executive orders were to decimate energy production. As a result energy prices rose dramatically.
    Same energy that is used in the creation, production, transportation of all goods and services in our lives.

    Massive deficits were also run under Trump – but somehow inflation was kept at bay?
    Why? Because Trump admin was pro energy and as such drove the price of hydrocarbons down – deflated if you will.

    So the cost of goods went down.

    We are not getting inflation because there is too much money sloshing around, we are getting it because the cost of producing goods has spiked due to huge input cost increases.

    Get energy prices back down by allowing/promoting for exploration and production, and you will see alot of inflation go away.

    But then they couldnt destroy the economy by jacking up rates to “fight” “inflation”

    1. Both really … because at least part of this inflation cycle is driven by two things …

      1. Corporations trying to make up for Pandemic losses
      2. Probing the resources of the marketplace. Companies are seeing just how much MORE they can charge for their products given the amount of capital won in the 10year Market rally and all the “Free” $$$ being splashed out by the government.

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