There’s no escaping the ravages of inflation. Far from “peaking” as some hoped, the consumer price index accelerated in May, rising at a 12.3% annual rate, the government reported Friday. Not only are the costs of necessities becoming more unaffordable, so are the costs of escaping by taking a vacation or by curling up on the couch with a video.
Persistence As I wrote last month, the rising cost of renting or owning a primary residence is particularly worrisome. It’s the biggest item in the consumer-price index’s market basket. What’s more, the price of shelter is “sticky’—meaning once it goes up, it stays up. Flexible prices have long been driving inflation, but sticky prices have become a real contributor in recent months. The sticky prices CPI, produced by the Atlanta Fed based on data from Friday’s CPI report, rose at an annual rate of 7.5% in May and is up at a 6.8% annual rate over the past three months, a 40-year high.
Prices are rising for these items not because demand for them has suddenly surged, but because the supply has been constrained, frequently by global forces, including the COVID pandemic, the war in Ukraine, and other factors, including droughts and heat waves. Global problem If today’s inflation weren’t a global problem, such an approach might work. Foreign suppliers unaffected by interest rates in the United States might be able to increase their production to satisfy U.S. demand.
The world needs a recession
Good luck. I know people doubling their rates. Anyone not increasing prices by double or even triple digits right now, is a sucker.
we still gonna Tremble in FEAR cause of The Goodness and Prosperity He’ll Provide! (Jeremiah 33:9)this is His World and we are His Children! Now World is Near as!
So what you're saying is, because we want to sell weapons to Ukraine the Fed has to hurl us into a depression? Or is Ukraine not really the problem? Exactly how much 'demand' has to be killed to offset simultaneous food, water, and energy crises?