The Consumer Price Index rose to 8.6 percent in June, something the media and many government economists think was “unexpected.” Really? I just have one question for them: Who does your grocery shopping and pumps your gas? Those of us outside the Washington, D.C., bubble not only expected inflation to keep rising, we know it is running higher than their estimates.
Here’s a quote from this article:
“Compared to the prior year, energy prices in May were up 34.6%, the most since September 2005.
“Meanwhile, the food index rose 1.2% from April to May and 10.1% over the prior year, the largest jump since March 1981.”
Separately, consumer sentiment, meaning how people fell about the economy, plunged 8.2 points to 50.2, well below the median forecast of 58.1. Again, not a surprise to us, but a shock to academics who probably never leave their ivory towers. This kind of “surprising” data just goes to show you how out of control the economy is. People who are supposed to be in charge have lost control.
What does this mean for you and I? Higher interest rates and a good chance of recession.
Published 6/1/2022. Read full article.