Consumer prices are up, up, and away; is inflation here to stay?
While last week President Joe Biden (D) encouraged Americans to celebrate the July 4 Independence Day holiday joyfully as "THE COST OF A 4TH OF JULY COOKOUT IN 2021 IS DOWN $0.16 FROM LAST YEAR," the U.S. government's Bureau of Labor Statistics (BLS) report released Tuesday shows another, opposite, and very different situation. That's because it is...accurate.
Caution: Save your thrifty July 4 holiday leftovers before you read the following.
CONSUMER PRICE INDEX – JUNE 2021
The Consumer Price Index for All Urban Consumers (CPI-U) increased 0.9 percent in June on a seasonally adjusted basis after rising 0.6 percent in May, the U.S. Bureau of Labor Statistics reported today. This was the largest 1-month change since June 2008 when the index rose 1.0 percent. Over the last 12 months, the all items index increased 5.4 percent before seasonal adjustment; this was the largest 12-month increase since a 5.4-percent increase for the period ending August 2008.
The index for used cars and trucks continued to rise sharply, increasing 10.5 percent in June. This increase accounted for more than one-third of the seasonally adjusted all items increase. The food index increased 0.8 percent in June, a larger increase than the 0.4-percent increase reported for May. The energy index increased 1.5 percent in June, with the gasoline index rising 2.5 percent over the month.
The index for all items less food and energy rose 0.9 percent in June after increasing 0.7 percent in May. Many of the same indexes continued to increase, including used cars and trucks, new vehicles, airline fares, and apparel. The index for medical care and the index for household furnishings and operations were among the few major component indexes which decreased in June.
The all items index rose 5.4 percent for the 12 months ending June; it has been trending up every month since January, when the 12-month change was 1.4 percent. The index for all items less food and energy rose 4.5 percent over the last 12-months, the largest 12-month increase since the period ending November 1991.
The energy index rose 24.5 percent over the last 12-months, and the food index increased 2.4 percent. (snip)
The food index increased 0.8 percent in June, as did the food at home index; both indexes rose 0.4 percent in May. As in May, the food at home increase was mostly due to the index for meats, poultry, fish, and eggs, which increased 2.5 percent over the month. The beef index rose 4.5 percent in June, its largest 1-month increase since June 2020. The index for fruits and vegetables rose 0.7 percent in June after being unchanged in the preceding month. (snip)
The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) increased 6.1 percent over the last 12 months to an index level of 266.412 (1982-84=100). For the month, the index rose 1.1 percent prior to seasonal adjustment. (emphases added)
Oh, by the way, you ain't seen nuthin' yet. Procter & Gamble and Kimberly Cark, whose companies produce essential personal care items, announced they will increase prices in September, so — helpful hint — stock up now. And while you're at it, grab those bread loaves and pasta packages, as a predicted poor wheat and grain harvest will push up the prices of these basic food items.
Oh, and by the way still yet again, no, the drought that will probably result in a poor harvest is not caused by "climate change" despite the mutterings of those who want Biden to charge higher taxes for climate infrastructure and more restrictions to combat this illusion. This is part of a cyclical weather pattern; it occurred pre–"climate change" more than 85 years ago during the Dust Bowl and in ancient Egypt over 3,800 years ago, when Joseph interpreted the Egyptian pharaoh's dreams, accurately predicting seven good years of harvest followed by seven bad years, and advised the pharaoh to plan accordingly.
The pharaoh did as advised, storing the grain during the good years so there was no inflation or starvation during the dry years.
But our present-day ruler does not have such wise advisers; they are urging him to tax and spend and pay it back tomorrow with inflationary dollars of reduced value during the bad years sure to follow. However, wages will probably not keep up with inflation, meaning real wages will decrease, especially for the middle and working classes.
You have been warned. Plan accordingly.
Graphic credit: Public domain.
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