“This is stagflation: the Fed is increasingly f#*ked,” exclaimed one veteran trader as Core CPI – among The Fed’s favorite inflation indicators after PCE – surged to +2.3% YoY, the highest since Sept 2008. This is the 10th month in a row above the Fed’s mandated 2% ‘stable’ growth as shelter and healthcare costs continue to surge.
Core CPI growth above Fed mandate for 10th month in a row.
Healthcare and Rent are soaring (bottom right)…
As the cost of living under a roof at night continues to outpace headline inflation…
And Medical Services rose the most since Nov 1982 MoM…
The index for all items less food and energy increased 0.3 percent in August, following a 0.1-percent increase in July.
The shelter index continued to rise, increasing 0.3 percent after a 0.2-percent advance the prior month. The indexes for rent and owners’ equivalent rent both rose 0.3 percent in August, as they did in July. The index for lodging away from home turned up in August, increasing 2.0 percent after a 2.4-percent decline the prior month. The medical care index rose sharply in August, increasing 1.0 percent. The hospital services index rose 1.7 percent, and the index for prescription drugs advanced 1.3 percent. The index for motor vehicle insurance continued to rise in August, increasing 0.5 percent. The apparel index increased 0.2 percent, and the index for tobacco rose 0.7 percent after falling in July.
In contrast to these increases, the index for used cars and trucks continued to decline, falling 0.6 percent in August, its sixth consecutive decrease. The indexes for household furnishings and operations, for recreation, and for airline fares all fell slightly in August, each decreasing 0.1 percent. The indexes for new vehicles and for alcoholic beverages were unchanged in August.
It appears the untenable Keynesian dilemma of ‘stagflation’ – as profiled in April – is upon us.
Money Supply at record high coupled with the velocity at record low means it is primarily supply of credit driven as opposed to demand driven.
Draw your own conclusions.
I read yesterday that on average, Canadians owe $1.67 for every dollar they earn….
I personally know of several people who have over $30,000.00 of credit card debt… AND a mortgage!!…… insane economics!!
I live in a flat broke, dying post industrial city of about 35k people in CT. The rents here are mind boggling! $900 a month for a two bedroom apt, in an old two family house.
The mill rate is 45 and the local .gov tax feeders announced that they might have to raise it to 50 mills. This is in a 92% White city where old folks are moving out in droves.
So I say that we are indeed in stagflation….big time. There’s virtually no work for an average working man that pays more than $12/hour, if you can find a job. With the fixed wages and rising costs to just live, we here in my little city are basically screwed. A heroin epidemic has already reached crisis stage and is soaring higher all the time. Gee whiz…I wonder why.
SMOD 2016
And this little Ct town will go 62 percent for Hilary Clinton who will feel you pain.
Lysander:
Bet your flat -broke CT industrial city will poll 62 percent for Clinton, 5 percent for Johnson and 2 percent for Jane. That’s ok Hitlery will felel your pain as she shuts down Colt, Smith and Wesson, Rugger and High Standard, for your own good of course.
obama was crowing about the new economic reports yesterday, sometimes I wish he had four more years to eat crow. But we all know he wouldn’t, not in a psychopaths nature, so hit the road fucktard.
Anybody see the report on under reported personal debt to help with this unreported inflation?
Consumers added $34.4 Billion in credit card debt in the second quarter, that’s half of what the total was for all of 2015. This is not because of splurging, this is people using credit trying to make up the difference from their pay to what their inflated cost of living is.
Shit is about to get real and obama squawks about how great he is.
We have been looted, and until every dime is drained, and the
US assets stripped to nil, the bankers will continue the game.
There are some 22-25 million Fed and State “workers”…
contractors employed/don’t know.
@ prusmc…..You nailed it. This is a majority demoncrat city in a majority demoncrat state. Every city is flat broke and the state is even broker, thanks to them.
BTW, when I moved here several years ago, I rarely saw a black face. The minority de jour was Hispanic. I just realized the other day that I’m seeing niggers all over the place. Now where did they all come from? Is HUD placing section 8 apes into the empty houses and apartments? That’s what I think is happening.
All we need now are a few thousand Somalis to be placed here so that the people can experience the true bliss of diversity.