Is Massive Inflation Just Ahead?
Are we headed to inflation the likes of which we have not seen since the Carter administration? April saw an increase of 0.8% in the Consumer Price Index after a 0.6% increase in March. The BLS reports a year over year increase of 4.2%. Keep in mind that a third of that increase came in the last two months. This inflation rate is three times the rate under the PDJT administration. [Top Line Data Here – Detailed Sector Data Here]. I would not be surprised to see inflation hit 6% or higher this year.
A leading cause of these increases have been massive increases in energy costs. Gasoline is up 49.6% year over year. And this was before the spike in many areas of the country due to the ransomware attack on the Colonial Pipeline. Fuel oil was up 37.3% year over year. There are areas of the country where the increases are in the 70-90% range.
Higher gas prices hit the middle class the hardest. It also causes an increase in the price of transporting goods particularly food. Keep in mind that these data points are six weeks old. They do not reflect recent upswings in energy prices. Significant increases in the price of food will be the result in the months ahead.
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