If the jobs market is as good as Trump and his acolytes proclaim, how could real hourly earnings be flat year over year? If the BLS is telling us inflation is 2.8%, you know the truth is north of 5%. The Fed’s excuse for not raising rates above their 8 year emergency level was inflation was below 2%. Now that unemployment is supposedly 3.8% and inflation is surging to near 3%, why the continued emergency level rates? Because they are fucking liars. The rates are this low to prop up Wall Street profits and the stock market. The narrative is all that matters.
Last night’s Singaporean show was the prelude to the rest of the week’s real action – central banks – and nothing drives The Fed more than inflation anxiety as exhibited by Core CPI this morning… and it printed hot.
For the 32nd consecutive month, the consensus estimate on the street was +0.2% MoM – and expectations were met – pushing the headline CPI to +2.8% YoY (as expected) – the highest since December 2011…
It is my sincere desire to provide readers of this site with the best unbiased information available, and a forum where it can be discussed openly, as our Founders intended. But it is not easy nor inexpensive to do so, especially when those who wish to prevent us from making the truth known, attack us without mercy on all fronts on a daily basis. So each time you visit the site, I would ask that you consider the value that you receive and have received from The Burning Platform and the community of which you are a vital part. I can't do it all alone, and I need your help and support to keep it alive. Please consider contributing an amount commensurate to the value that you receive from this site and community, or even by becoming a sustaining supporter through periodic contributions. [Burning Platform LLC - PO Box 1520 Kulpsville, PA 19443] or Paypal
-----------------------------------------------------
To donate via Stripe, click here.
-----------------------------------------------------
Use promo code ILMF2, and save up to 66% on all MyPillow purchases. (The Burning Platform benefits when you use this promo code.)
Core CPI also rose to +2.1% YoY (as expected) – the highest since Jan 2017.
The indexes for new vehicles, education and communication, and tobacco increased in May, while the indexes for household furnishing and operations, and used cars and trucks fell. The indexes for apparel, recreation, and personal care were unchanged.
The medical care index increased 0.2 percent in May, with the index for prescription drugs increasing 1.4 percent, the index for hospital services increasing 0.5 percent, and the index for physicians’ services increasing 0.1 percent. The new vehicles index increased 0.3 percent in May, while the index for motor vehicle insurance increased 0.4 percent after falling 0.2 percent in April. The indexes for tobacco and for education and communication also increased.
The index for all items less food and energy rose 2.2 percent over the past 12 months, after increasing 2.1 percent in the 12 months ending March and April, and the medical care index rose 2.4 percent. Indexes that declined over the past 12 months include those for new vehicles, airline fares, used cars and trucks, and communication.
And while rent inflation remained the same, shelter index rose 3.5 percent over the last 12 months…
And while prices are soaring, real wage growth is slumping…
Real average hourly earnings were unchanged YoY – the weakest since Feb 2017.
Over to you Jay!
I’m a big fan of the Chapwood Index, which calculates inflation based on the things people actually buy. They do it on a city-by-city basis, but it looks like the 5-year average is around 10% per year.
At 10% inflation, a $5 meal in 2009 would cost $12 today. A $20 steak at a decent steakhouse today would have had to cost just $8.50 in 2009. That’s a little extreme. Sure there are some examples of that, but there are also $5 large pizzas from lil caesars….
Real inflation seems to be around 5%.
Isn’t that the same Bureau of Lies & Scams that calculated Obomba’s numbers and the decrease in the Deficit that was instead a $Trillion a year increase? Liars figure.