Don’t want to deal with record-high levels of inflation eating away at the dollars in your wallet, pushing the costs of groceries higher and taking a hammer blow to small businesses that already have razor-thin margins?
Well, too bad. Brandon’s too senile to grasp the issue and the money printers, though slowing (supposedly), are still pumping out fresh new dollars like there’s no tomorrow.
As a result of the money printers and the massive amount of federal spending they’re meant to fund, supply chain issues, and all the other little areas of concern that Team Biden obviously can’t deal with, inflation breached a 40-year high last month, shooting up to a whopping 7.5 percent!
The Bureau of Labor Statistics, in charge of reporting such things, had this to say on the economic situation in its monthly report:
The all-items index rose 7.5 percent for the 12 months ending January, the largest 12-month increase since the period ending February 1982. The all items less food and energy index rose 6.0 percent, the largest 12-month change since the period ending August 1982. The energy index rose 27.0 percent over the last year, and the food index increased 7.0 percent.
That included sky-high levels of inflation in January alone, including 0.9 percent increases for the month in both the food and energy inflation indexes.
What’s worse is that the way BLS weighted certain categories might mean that the topline number given isn’t accurate and actually downplays the inflation we’re currently seeing. As the Conservative Treehouse notes:
The BLS readjusted the weighting for relative price importance, putting added weight to urban economic priorities (ie. food at restaurants), which indicates their intent to downplay the scale of inflation overall. The topline statistic of 7.5% annual inflation (year over year) is bad; however, because of weighting that figure belies the bigger issue, it’s actually much worse. In January alone inflation jumped 0.8% (unadjusted), primarily driven by the first-round of 2022 consumer inflation that preexisted since early December 2021.
That’s a problem because it’s tilted toward things viewed as city purchases, such as takeout food, underweights the things that average people tend to buy more, such as groceries. For example, though the BLS says that the food inflation index rose by 0.9 percent, most food products rose by over 1 percent, with vegetables rising by 1.7 percent and cereals rising by a similar number. By contrast, “food away from home,” which the index is weighted toward, rose by only 0.6 percent.
Yet worse, that’s not just a problem within categories, it’s a problem between categories. Again according to the Conservative Treehouse:
Look at January “electricity” price increases. A jump of 4.5% in one month alone, and keep in mind the BLS puts far less importance on electricity than “food away from home”.
In fact, the weighting for economic importance of restaurants is 5 times greater than the electricity to power your house.
What does that weighting hide? That America is witnessing a massive, massive level of inflation. One more according to Conservative Treehouse:
You can see the statistical smoothing to present the softest inflation data by looking at Food at Home, Meats, Poultry and Fish. The actual rate of inflation in that category is 40%+ at retail. The BLS deemphasizes the price increase by putting less economic importance on the category and they come up with a 12.2% increase, one third of the actual price we are feeling.
Despite the BLS putting less emphasis on food we purchase to make at home, the overall scale of 7.5% aggregate weighted inflation would indicate to us that real inflation on all items is running around 23 to 28%.
23-28 percent! Those are inflation levels of the sort seen in failing, third-world countries, not superpowers like the US! Yet, under President Biden, that’s just what we’re seeing. He really is the next Jimmy Carter.
This story syndicated with permission from Will – Trending Politics
Notice: This article may contain commentary that reflects the author's opinion.
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