Sunday, November 28, 2021

The Other Inflation Guide

A fellow who used to work for Sensenbrenner, but opposed the Globaloney that Sensenbrenner pretended to oppose, has his own column.  It's worthwhile to stop there every once in a while.

He's figured out that inflation is here for a while, but he uses "PCE" (personal consumption expenditures) rather than "CPI."

It's ugly.

...the new PCE numbers show that between September and October, monthly and yearly price increases regained momentum that had previously showed signs of waning....

(Go to the link.  His list of monthly increases formatting sucks.

...not only is the October increase back to the previous peaks in March and April, but the August and September results were each revised up from 0.3 percent....

As you can see from the next list, the same kind of pick up can be seen in overall PCE inflation rates on a year-on-year basis. And these percentage canges are more important than the monthly changes because they measure the trend over a longer period of time, and also smooth out the kind of fluctuations that can pop up for random reasons in the short term....

(Did I tell you his formatting sucks?  Go to the link.)

...As for the year-on-year core percentage changes, they’ve arguably been worse momentum-wise than their monthly counterparts because they’d shown no signs of decline through September. Now they’ve become worse still with the jump to 4.1 percent in October (the biggest such surge in decades). And September’s rate has been revised up from 3.6 percent....

Remember:  this is Trump's legacy, too.  I could add Bush the Dumber and Obama; both provided lots of candy--Bush to the big Banks and the "Big" Three, Obama to his voting base--but they're in this up to their miserable necks.

As is the Federal Reserve.

Plenty for the next President to do, eh? 

No comments: