Bidenflation is already widely regarded as pretty bad; even if the left refuses to admit that Biden is to blame for it, claiming that Trump’s spending is what’s really to blame, only the most absurd liberals are claiming that the skyrocketing inflation the average American is now seeing is anything other than terrible.
But inflation might be even worse than we think; as Breitbart reports, one of the key markers of consumer inflation rose even more than expected in January, increasing at the fastest rate in four decades. As that outlet reports:
The personal consumption expenditure price index rose by more than expected and indicated that inflation accelerated from the six percent annual rate in January. This was the fastest rate of price increases since 1982.
The Fed prefers the PCE price index because it covers a broader range of goods and services and accounts for consumers substituting cheaper goods or services when prices rise on premium versions.
Core PCE inflation, which excludes food and energy prices, rose by 5.4 percent compared with a year ago. This is the measure that the Federal Reserve uses for its annual two percent inflation target. This is the fastest pace of core price hikes since 1983.
The PCE inflation number, sitting as it does a bit lower than the current inflation number, which is close to 8%. Reporting on that number, also the highest in four decades, US Inflation Rate reports that:
The annual inflation rate for the United States is 7.9% for the 12 months ended February 2022 — the highest since January 1982 and after rising 7.5% previously, according to U.S. Labor Department data published March 10. The next inflation update is scheduled for release on April 12 at 8:30 a.m. ET. It will offer the rate of inflation over the 12 months ended March 2022.
However, as the Breitbart article noted, the PCE number includes substitutions. It takes into account that some consumers might ditch goods they normally like in a desperate attempt to push off a bit of the price increases we’re seeing. The Bureau of Economic Analysis, describing what the PCE number entails, notes that:
“A measure of the prices that people living in the United States, or those buying on their behalf, pay for goods and services. The PCE price index is known for capturing inflation (or deflation) across a wide range of consumer expenses and reflecting changes in consumer behavior.”
And even with that included in the calculation it still is hovering around a whopping 6%. Yet worse, not only did it increase to that blood-chilling height, but it rose faster than expected. That means that inflation, despite the continued promises of economists, isn’t being brought under control but is instead increasing faster than “the experts” think it should.
Inflation is already known to be bad; everyone who feels the sting at the grocery store and the lightening of their wallet knows that inflation is a problem. But, with this new PCE number in mind, a number that reflects consumer attempts to escape inflation and advanced faster than “the experts” thought, it looks like Bidenflation might be even worse than we thought.
This story syndicated with permission from Will, Author at Trending Politics
Notice: This article may contain commentary that reflects the author's opinion.
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