The Bureau of Labor Statistics (BLS) has released the June Consumer Price Index (CPI) [DATA HERE]. Overall inflation increased 1.3% bringing the annual rate of inflation to 9.1% as calculated. 9.1% is the fastest rate of inflation since 1981. How long will it be before inflation hits double digits?
The financial pundits are “shocked.” The Federal Reserve is raising rates as though the issue is a demand side problem. However, the economy has been contracting for months. While the dreaded “R” word has been avoided by the Big Media outlets, the reality is that we are already well into a recession.
The real problem is on the supply side. The cost of energy is skyrocketing because of the policies of the Leftists who want to “fundamentally transform” the country into a Marxist state.
There are some stunning numbers in the chart above.
The rate of annualized inflation for natural gas is now running at almost 100%. Translation: If this continues, the current price will double again by this time next year. The cost has risen 8.2% in ONE month. This is at a time when natural gas usage declines because heating is no longer needed.
Gasoline is worse. The annualized rate for motor fuel of all types is 132%. This directly impacts the cost of delivering goods to market. It also takes a huge bite out of the take-home pay of the average American. How long before people will be taking out micro loans from payday lenders to put gas in their vehicles? When that happens (and it will if it hasn’t already happened), we can expect to hear from the administration how these lenders are preying on destitute people. The administration will call for investigations to end the “preying” on people. Absurd, of course, Payday lenders serve a purpose in the economy by helping people to bridge a shortfall between paychecks.
All of this is the result of the Green New Deal that could not get passed in Congress. It is being implemented by dictatorial fiat by Biden’s handlers behind the curtain.
The next issue will be food. Yes, there have been significant increase there already. It will get worse. The cost of the product in the field is rising significantly because of all the price increases in fertilizer, oil, diesel, packaging and transportation. This will hammer the public later this year.
The Democrats are blaming everything except the fact that they have unleashed the hounds of inflation with their profligate spending. Elizabeth “Pochontas” Warren blamed the banks. Other Dems blamed bank overdraft fees.
Joe Biden’s solution is to lower prescription drug costs. To note one wag: “Joe, it is not the medicine cabinet that is on fire. It’s the whole house.”
I think the only question now is just how high will inflation go? Will we hit the peak of the Carter years?
