The 'I' thing is not going away

The Biden re-election campaign got some bad news about the "I" word.  This is the bad news:

Inflation rose again in April despite an aggressive interest-rate hike campaign by the Federal Reserve, indicating that strong underlying price pressures are still bubbling beneath the surface of the economy -- and continuing to burden millions of Americans.    

The Labor Department said Wednesday that the consumer price index, a broad measure of the price for everyday goods including gasoline, groceries and rents, rose 0.4% in April from the previous month, much faster than the 0.1% increase recorded in March. 

Prices climbed 4.9% on an annual basis, slightly below the 5% increase forecast by Refinitiv economists. 

Although inflation has cooled from a peak of 9.1%, it remains about more than double the pre-pandemic average and well above the Fed's 2% target rate.

Bad numbers for the economists.  High gasoline and food prices for the American family.

What happens now?  I would assume that we will hear from the Biden administration that inflation is actually down.  They will remind us that gasoline will now cost $ 3.25 rather than $ 3.50.   True but you are still leaving more money at the gas pump than a couple of years ago.  Add to this the price of eggs and Americans are not happy.

The Fed will likely increase interest rates.  I am not a finance expert but that probably means that the cost of money will go up, whether you are buying a home, one of those brand new cars, or refinancing a loan.

Inflation is here and he is usually the last guest to leave the party.   

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Image: Wikideas1

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