WASHINGTON (AP) — Inflation soared over the past year at its highest rate in four decades, hammering America’s consumers, wiping out pay raises and reinforcing the Federal Reserve’s decision to begin raising borrowing rates across the economy.
The Labor Department said Thursday that consumer prices jumped 7.5% last month compared with 12 months earlier, the steepest year-over-year increase since February 1982. The acceleration of prices ranged across the economy, from food and energy to apartment rents and electricity.
When measured from December to January, inflation was 0.6%, the same as the previous month and more than economists had expected. Prices had risen 0.7% from October to November and 0.9% from September to October.
Shortages of supplies and workers, heavy doses of federal aid, ultra-low interest rates and robust consumer spending combined to send inflation leaping in the past year. And there are few signs that it will slow significantly anytime soon.
Food costs, driven by pricier eggs, cereal and dairy products, increased 0.9% in January. New car prices, which have jumped during the pandemic because of a shortage of computer chips, were unchanged last month but are up 12.2% from a year ago. The surge in new-car prices has, in turn, accelerated used-car prices; they rose 1.5% in January and are up a dizzying 41% from a year ago.
The steady rise in prices has left many Americans less able to afford food, gas, rent, child care and other necessities. More broadly, inflation has emerged as the biggest risk factor for the economy.
Before the stupid, worthless, incompetent and inept federal “government” and its lickspittle the federal reserve started literally pouring trillions of dollars into the so-called “economy,” somebody should have sat them down and given them the seventh grade history course on the Weimar Republic and hyperinfation, which has affected other countries as well, and now us.
As the money supply keeps increasing, in our case seemingly without end, like the Weimar Republic (doesn’t anyone learn a ****** thing in high school these days?), the value of the money goes down.
You don’t make people rich by pouring out money – you make the money you are pouring out worth less and less.
And this new economics pushed by the SUPER PROGRESSIVES and their stooge Joe Biden does not in any way change that reality.
So now there are literally trillions of dollars “sloshing” around out there, to use the words economists following the situation use to describe it,
And what does the goofball Biden want to do?
You got it, pour out even more trillions.
What a fool!
As is anyone who believes that flooding an economy with money is somehow going to prove a cure for that failing economy.
Seventh grade economics: Hyperinflation can be caused by an oversupply of paper currency without a corresponding rise in the production of goods and services.
This lash-up called the federal reserve hasn’t had any credibility since the bearded buffoon Ben Bernanke was in there a Fed chair, so today, those fools have no credibility left that they can lose:
CNBC
“Fed’s Bullard says the central bank’s ‘credibility is on the line,’ needs to ‘front-load’ rate hikes”
Jeff Cox
February 14, 2022
St. Louis Federal Reserve President James Bullard made his case for a rapid move higher in interest rates, saying Monday that the central bank needs to react to accelerating inflation.
“I do think we need to front-load more of our planned removal of accommodation than we would have previously.”
“We’ve been surprised to the upside on inflation.”
“This is a lot of inflation,” Bullard told CNBC’s Steve Liesman during a “Squawk Box” interview.
“Our credibility is on the line here and we do have to react to the data,” he added.
The consumer price index for January showed a 12-month increase of 7.5%, even more than Wall Street estimates and continuing a pattern that began in the back half of 2021.
“My interpretation was not so much that report alone, but the last four reports taken in tandem have indicated that inflation is broadening and possibly accelerating in the U.S. economy,” Bullard said.
Even with strong inflation gains, real incomes have been mostly declining as inflation is outpacing the rise in average hourly earnings.
“The inflation that we’re seeing is very bad for low- and moderate-income households,” he said.
“People are unhappy, consumer confidence is declining.”
“This is not a good situation.”
“We have to reassure people that we’re going to defend our inflation target and we’re going to get back to 2%.”
Despite the inflation surge, the Fed intends to buy $20 billion more of Treasurys over the next month along with nearly $28 billion in MBS, before ending the program in March.
As Rigzone reports today that WTI for March delivery rose $1.59 to settle at $93.66 a barrel in New York, let’s drop back to a Rigzone article on Monday, February 14, 2022 titled “Biden Will Work Like the Devil to Bring Gas Prices Down” by Andreas Exarheas where we had this goofy old fool Biden flappin g his gums like an idiot as follows:
“I’m going to work like the devil to bring gas prices down.”
That’s what U.S. President Joe Biden said during remarks on his administration’s work to lower healthcare costs recently, which were made at Germanna Community College in Virginia.
“Look, again, slight digression – inflation is up.”
“It’s up.”
“And coming from a family when the price of gas went up, you felt it in the household, you knew what it was like, it matters,” Biden said during the remarks.
“I’m going to work like the devil to bring gas prices down, which I’m going to – I’m working to make sure that we keep strengthening the supply chains to bring the cost of energy and everything else and the goods that come to America down by helping the ports 24/7, by changing a whole range of things,” he added.
“You know, what’s happened with Covid – Covid has caused significant increase in prices in the supply chain, because when a factory shuts down in another part of the world and you need that particular product in order to finish and build whatever you’re working on, the price goes up exponentially, like for cars,” Biden went on to say.
end quotes
If anybody needs more proof that these Democrats really screwed OUR nation big time by saddling us with this senile old fool for president, there it is right there, because the dude is babbling incoherently.
Since the last time old Joe said he was going to work like the dickins to bring gas prices down, the price I am paying per gallon has gone up a dime, not down a penny.
What is truly amazing is that there are people out there, supposedly well-educated adults, who actually take this nonsense gibberish Joe Biden is spouting about prices going up exponentially seriously, as if Joe Biden is not really babbling incoherently but instead is a revealing a cosmic truth that only he as an American president who won the war for the soul of America could comprehend.
CNBC
“Retail sales surge 3.8% in January, much more than expected amid inflation rise”
Jeff Cox
Feb. 16, 2022
In nominal terms, real spending increased at a 3.3% annualized pace from October 2021 through January 2022, according to Capital Economics.
However, the firm cautioned that, when adjusted for inflation, real spending actually declined at a 6.8% pace during the period.
CNBC
“Fed’s Bullard says inflation ‘could get out of control,’ so action is needed now”
Jeff Cox
Feb. 17, 2022
NEW YORK — St. Louis Federal Reserve President James Bullard cautioned Thursday that without central bank action on interest rates, inflation could become an even more serious problem.
“We’re at more risk now than we’ve been in a generation that this could get out of control,” he said during a panel talk at Columbia University.
Fed officials had been resisting tightening policy, insisting for much of last year that the current run-up in prices was tied to pandemic-specific factors, such as clogged supply chains and outsized demand for goods over services, and would fade over time.
“Overall, I’d say there’s been too much emphasis and too much mindshare devoted to the idea that inflation will dissipate at some point in the future,” Bullard said.
“We’re at risk that inflation won’t dissipate, and 2022 will be the second year in a row of quite high inflation.”
And here is a federal reserve DOOFUS who got his wish at the expense of the common folks in America who right now can’t put food on the table or heat their houses:
MARKETWATCH
“Fed’s Kashkari says he could tolerate inflation above target for ‘several years’”
By Greg Robb
Published: Apr 11, 2019 5:11 p.m. ET
The head of a regional Fed bank said on Thursday that he could tolerate inflation running above the central bank’s target for “several years.”
And we are even bigger fools for believing this “inflation is transitory” BULL**** being peddled by the federal reserve, a clear and present danger to our American way of life, those of us who are the common folks, alright, and Joe Biden’s white house, which may well be the bigger clear and present danger to OUR American way of life.
This “let the economy run hot” mantra Cash-and-Carry is talking about here in POLICY, not an accident related to the COVID.
To demonstrate the point, here is “TOODLES” Yellen, goofball Joe Biden’s treasury secretary back when she was Hussein Obama’s federal reserve chief:
CNBC
“Janet Yellen is willing to let the economy run hot: RBS chief US economist”
Tom DiChristopher
June 3, 2016
Federal Reserve policymakers may not raise interest rates in June because Chair Janet Yellen would rather let the economy overheat than hike too soon, financial professionals said Friday.
“If they don’t go in June and we have Brexit, or something else that prevents them from going in July, I don’t think Janet Yellen is going to say, ’Darn, I should’ve taken the opportunity,” RBS chief U.S. economist Michelle Girard told “Squawk Box.”
“If I’m Janet Yellen, listen to what she said.”
“She wants to be cautious.”
“She wants to make a mistake of going too long.”
“Let it run hot,” she said.
What a stupid people these Americans are is all I can think, believing this HORSE**** about inflation being transitory, which is why we have TWITTER in this country as a main means of communication between the “government” and the people:
Last Updated: 02/18/22
“On the Benefits of Running the Economy Hot”
A speech presented by Charles Evans, president and chief executive officer, Federal Reserve Bank of Chicago, on February 18, 2022, at the 2022 US Monetary Policy Forum, sponsored by the Initiative on Global Markets at the University of Chicago Booth School of Business, in New York City, NY.
Don’t worry, people, everybody be cool!
Yes, there is inflation, but hey, as Joe Biden says, and he is the dude who knows this stuff cold, it’s a “time of war” and the inflation is transitory, which means in 20 years, it might come down, so nothing whatsoever to worry about, as Joe is firmly in control!
END OF QUOTE -REPEAT THE LINE!
CNBC
“Inflation rose 9.1% in June, even more than expected, as consumer pressures intensify”
Jeff Cox
July 13, 2022
Shoppers paid sharply higher prices for a variety of goods in June as inflation kept its hold on a slowing U.S. economy, the Bureau of Labor Statistics reported Wednesday.
The consumer price index, a broad measure of everyday goods and services related to the cost of living, soared 9.1% from a year ago, above the 8.8% Dow Jones estimate.
That marked the fastest pace for inflation going back to November 1981.
Taken together, the numbers seemed to counter the narrative that inflation may be peaking, as the gains were based across a variety of categories.
“CPI delivered another shock, and as painful as June’s higher number is, equally as bad is the broadening sources of inflation,” said Robert Frick, corporate economist at Navy Federal Credit Union.
“Though CPI’s spike is led by energy and food prices, which are largely global problems, prices continue to mount for domestic goods and services, from shelter to autos to apparel.”
“U.S. inflation is above 9%, but it is the breadth of the price pressures that is really concerning for the Federal Reserve.” said James Knightley, ING’s chief international economist.
“The recession threat is rising.”
“Up across the board”
Energy prices surged 7.5% on the month and were up 41.6% on a 12-month basis.
The food index increased 1%, while shelter costs, which make up about one-third of the CPI rose 0.6% for the month and were up 5.6% annually.
This was the sixth straight month that food at home rose at least 1%.
Rental costs rose 0.8% in June, the largest monthly increase since April 1986, according to the BLS.
Electricity costs rose 1.7% and 13.7%, respectively.
New and used vehicle prices posted respective monthly gains of 0.7% and 1.6%.
Medical-care costs climbed 0.7% on the month, propelled by a 1.9% increase in dental services, the largest monthly rise ever recorded for that sector in data that goes back to 1995.
The increases marked another tough month for consumers, who have been suffering through soaring prices for everything from airline tickets to used cars to bacon and eggs.
“Real incomes fall further”
For workers, the numbers meant another hit to the wallet, as inflation-adjusted incomes, based on average hourly earnings, fell 1% for the month and were down 3.6% from a year ago, according to a separate BLS release.
So, how does “WORLD LEADER” Joe “The Bozo” Biden see these inflation numbers?
Is the dude in denial about inflation in the same way he is in denial about the complete mess of the world he has made in just two short years of sheer and total incompetence on his part?
Let’s go to the Reuters article “Biden: June inflation figures “unacceptably high” but out-of-date” on July 13, 2022, where we have the old goofball’s take on things, as follows:
WASHINGTON, July 13 (Reuters) – U.S. President Joe Biden said June inflation figures were “unacceptably high” but also said they were out of date given the recent drop in gasoline prices.
“Energy alone comprised nearly half of the monthly increase in inflation.”
“Today’s data does not reflect the full impact of nearly 30 days of decreases in gas prices, that have reduced the price at the pump by about 40 cents since mid-June,” Biden said in a statement.
END OF QUOTE – REPEAT THE LINE
And to see if anyone who is in their right mind and is sane and rational agrees with Joe, let’s go to a Reuters article titled “U.S. firms see growing signs of slowdown as inflation persists, Fed survey shows” by Lindsay Dunsmuir on July 13, 2022, as follows:
The Fed released its latest temperature check on the state of the economy as it pushes ahead with a series of interest rate hikes that are aimed at cooling demand but are also stoking concerns of a recession.
On that front, there were few signs that inflation looks set to rapidly abate anytime soon as policymakers continue to struggle with getting it under control.
end quotes
And WHOA, that must be wrong because it is not what Joe Biden is saying, and since Joe is a “WORLD LEADER,” he is the one who has to be right, isn’t he?
But let’s go back to that article to see what else it has to say, to wit:
Fed policymakers keep a keen ear on feedback from business contacts around the country as they parse the economic outlook.
The report also noted that substantial price increases were reported across all districts with “most contacts expect pricing pressures to persist at least through the end of the year.”
Indeed, districts continued to report indications of high – and widespread – inflation.
The Boston Fed reported that hotel room rates there had shot up 87% between February and May and the year-over-year price of frozen fish was up 25%, while in the Cleveland Fed’s district “most firms raised prices as they attempted to keep up with rising costs.”
end quotes
So who is responsible for those hotel room rates rising?
Let’s go back to the CNBC article titled “Inflation rose 9.1% in June, even more than expected, as consumer pressures intensify” by Jeff Cox on July 13, 2022, to see what the white house has to say about that:
White House officials have blamed the uptick in prices on Russia’s invasion of Ukraine, though inflation was already moving aggressively higher before that attack in February.
President Joe Biden has called on gas station owners to lower prices.
The administration and leading Democrats also have blamed what they call greedy corporations for using the pandemic as an excuse to raise prices.
After-tax corporate profits, however, have increased just 1.3% in aggregate since the second quarter of 2021, when inflation took hold.
end quotes
And what can you say about that, other than let’s go, Brandon, you da man!
CNBC
“Wholesale prices shoot up near-record 11.3% in June on surge in energy costs”
Jeff Cox
July 14, 2022
Inflation hit hard at the wholesale level in June, as producer prices surged a near-record amount from a year ago due to a big jump in energy costs, the Bureau of Labor Statistics reported Thursday.
The producer price index, a measure of the prices received for final demand products, increased 11.3% from a year ago, the highest reading since the record 11.6% in March.
The release comes one day after the BLS reported that the consumer price index, which measures final-sale prices in the marketplace, surged 9.1%, the highest 12-month gain since November 1981.
Energy and food prices have been particularly burdensome, but the June reports show price pressures are broadening.