The cost of living posts biggest surge since 2008, U.S. CPI shows, as INFLATION spreads through Econ

"The cost of living leaped in June by the largest amount since 2008 as inflation spread more broadly through the U.S. economy, raising fresh questions about whether the spike in prices will subside as quickly as the Federal Reserve predicts.

The consumer price index climbed 0.9% last month, the government said Tuesday. The cost of used cars accounted for more than one-third of the increase, but prices for food, energy, clothing, plane tickets and hotels also rose sharply.

The increase easily exceeded forecasts. Economists polled by The Wall Street Journal had estimated a 0.5% advance.

The rate of inflation in the 12 months ended in June climbed to 5.4% from 5%. The last time prices rose that fast was in 2008, when oil hit a record $150 a barrel.

... even the Fed admits it was caught off guard by how high inflation has risen. There’s a risk inflation could stay higher for longer than it expected, according to minutes of the Fed’s most recent strategy session."
https://www.marketwatch.com/story/c...est-increase-since-2008-cpi-shows-11626180086

This isn't transitory inflation. Only blaming supply chain issues ignores the record money supply growth. We see prices rapidly increasing in places like LA and Seattle. Gas prices in LA and San Francisco have run to $5 and $6, respectively. While inflation is increasing across the country due to money supply, the concentration of money in areas like San Francisco is causing huge rises. The rate of increase is much higher in urban areas like Southern California, because the late restart of their economy, in addition to fiscal and housing policies, has exacerbated the supply chain issues.

 

When there's strong economic growth, there's inflation.

6.4% GDP growth in Q3 2021.

That's a lot.

 

That's Q1 2021. I don't think the growth we've experienced over the first quarter is sustainable. People are spending money they don't have. Post-Pandemic credit-card debt has increased by 62%, and banks know people can't pay it. That's why you see Wells Fargo shutting down personal lines of credit, and people are struggling to acquire home loans.

 

When there is too much cash floating around, inflation happens. One can have growth without inflation.

 

Inflation is caused by money pumped into a system without wealth creation to back it up
you will have no inflation if money put into the system is backed up by equal amount of wealth creation
economics 101

 

This is something we certainly need to keep an eye on. Hopefully this is just an outlier.

 

It's only going to get worse. around the world hate America and are planning America's economic destruction as part of their great reset. want inflation. see it as a way to punish old racist white people. Soon it will get worse as begin their, the dollar is racist, dump the dollar, global campaign.

 

Actually, since we've borrowed so much money from them, they want a strong dollar. Inflation weakens the currency.

 

Probably too much. Developed economies may also suffer from rapid growth...brings on "bubbles."

 

People paid down their credit cards during the pandemic so growth in credit debt is not a canary in the coalmine right now (I paid off all of mine last year to the tune of about $8K), and the Wells Fargo situation is far more complicated. They are prohibited by the fed from growing their balance sheet until they get their house in order and are discontinuing the credit lines in favor of other products. Of course the growth is unsustainable, however. It is no different than Obama's "growth" being largely a recovery of losses from the depth of the recession.

 

Ahhh, the collapse. It is near.

 

People with incomes in 65-75th percentile paid their debt, because there were a bunch of relief programs that made it easier to pay. For example, I paid off my student loans cause it was interest-free. 2020 was my best year financially, but I was earning income during the pandemic. However, many people haven't been paying rent or student loans. I find it extremely worrying that credit card debt is increasing so much at a time when the government is essentially providing people with $1,200-2,800 worth of aid.

Also, I hate the comparisons to 2008-2012. 2020-21 is easily the worst international crisis I've witnessed in my lifetime. Pandemic, shut-downs, supply chain issues, Hyperinflation, Civil Wars, Nuclear stand-offs, etc.etc.

 

Then why are we paying more than .20 cents for a loaf of bread?

 

The U.S. recorded its sharpest spike in the poverty rate since the 1960s, with 8 million Americans being added to the government designation of poor by the end of 2020.

The U.S. poverty rate rose by 2.4 percentage points during the final months of 2020 amid the ongoing coronavirus pandemic and lingering economic stagnation. Economists from the University of Chicago and University of Notre Dame said the nation saw the largest annual increase in poverty in nearly 60 years.

Black Americans were hit the hardest during this time period. The poverty rate for Black Americans jumped by 5.4 percentage points, meaning that about 2.5 million more Black individuals are now considered poor by official government classification. The overall U.S. poverty rate, according to this latest study, sat at about 11.8 percent in December 2020.

One of the researchers who led the study, Professor Bruce D. Meyer of the University of Chicago's Harris School of Public Policy, told Newsweek Monday that if not for additional government aid, "poverty would rise substantially" across the country. The study, which pulled data from late December surveys, found that the CARES Act stimulus relief checks passed last March helped to forestall the poverty rate from spiking even higher.
https://www.newsweek.com/us-records...U.S. recorded its sharpest,by the end of 2020.

 

I'm not worried about it. If people get underwater, they can declare bankruptcy. The mortgage situation is far more concerning to me. These low interest loans today are going to put pressure toward higher interest rates for other kinds of borrowing down the road. A 2.5%-3% 30 year mortgage will push up interest rates even more when inflation returns.

 

They do seem to come at the end or immediately proceeding a Republican President.

It isn’t surprising after the last Republican President’s fiscal policy.

Maybe we just didn’t have enough QE? Or was it we didn’t cut the taxes of the super wealthy enough?

 

Maybe Democrats shouldn't have shutdown their economies, and then encouraged their members to burn down cities and shoot black people. Inflation is worse in Democrat areas.

 

Inflation is worse in densely populated areas because that is where most economic growth and exchange occurs.

Republican towns not being impacted as heavily should surprise anyone.

 

Too many humans, too few resources, too many opinions, too few good ones, too many indicators of what's coming, too few people paying attention to them.

 

I live near two major cities in Florida. Lot's of economic activity. We opened up much faster and it made all the difference. DeSantis saved our lives and livelihood while your man, murderer Cuomo, was playing political games.

Let's not play dumb. In the early days, you were literally telling us that you liked the shutdowns cause it would damage the economy, and therefore, Trumps chances. You knew those policies would hurt people, but you didn't care. You supported air travel to Europe and China cause Trump didn't support it.

 

Care to direct quote me where I said anything you just asserted? Or have you chosen being an outright liar as a new debate strategy?

 

Trying to decipher this incredibly misguided "code".

Anyway, based on reading that, it is CLEAR THAT-->= RW/Republicans

I never realized that our views had so much in common.
Good lookin' out.

Btw, back on-topic, while WE Both AGREE That The GOP Is To Blame, Inflation is caused by many factors (regardless of who is in power).

 

Yeah. It's probably best for you to believe you didn't support those things. That way you can look yourself in the mirror.

Have you come around to believing that Covid-19 came from a lab?

 

Largest tax increase possible on the poor and middle class! Highest since uh Obama shocker!

 

Glad to see you have followed the normal Republican procedure when you don’t have a point.

At least I am not the one calling trump the next coming of Jesus Christ and supporting pedophile congressmen like you have posed so many times. You do you though, on ignore though.