This morning we learned that the inflation that Team Biden tried to convince everybody would be “transitory” is anything but as the June rate soared to a 40-year high:
Inflation by category is not very comforting from the US CPI report:
Gas +60%
Gas utilities +38%
Electricity +14%
Chicken +19%
Groceries +12%
New cars +11%
Shelter +6%
Apparel +5%If you're wondering what the big issue is going to be for the midterms… this impacts everyone.
— The Wokest Numbersmuncher (@NumbersMuncher) July 13, 2022
The Biden presidency is going great:
The latest consumer inflation number released Wednesday showed price hikes accelerated 1.3 percent in June (compared to a one percent increase in May) to reach a whopping 9.1 percent in the last 12 months, according to the Bureau of Labor Statistics.
As BLS explains in their release for Wednesday’s data, the price of most goods and services continues to spike out of control as the Fed tries to spike interest rates in order to slow the increases — so far to no avail:
The increase was broad-based, with the indexes for gasoline, shelter, and food being the largest contributors. The energy index rose 7.5 percent over the month and contributed nearly half of the all items increase, with the gasoline index rising 11.2 percent and the other major component indexes also rising. The food index rose 1.0 percent in June, as did the food at home index.
Right on cue, New York Times economist Paul Krugman was serving up some spin:
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Agree with this thread — today's hot inflation number is already out of date, not reflecting falling gasoline prices and other factors that have recently gone into reverse. But hard to imagine that the Fed won't hike by 75 anyway 1/ https://t.co/aBm3TyqY5x
— Paul Krugman (@paulkrugman) July 13, 2022
It’s almost as if Ron Klain hacked Krugman’s account and is doing an online impression of the Nobel laureate:
The good news is that I don't think this matters much. The long-term rates that matter for the real economy much more dependent on how high Fed funds eventually goes than on the precise path. The question really is how the Fed reacts if/when the numbers improve 2/
— Paul Krugman (@paulkrugman) July 13, 2022
If it signals a more dovish turn if, as Josh and I both expect, underlying inflation looks better by the next FOMC meeting, not too much damage will have been done. Markets pricing in much slower inflation looking forward; if this starts to show in real data, we'll be OK 3/
— Paul Krugman (@paulkrugman) July 13, 2022
The Biden White House will certainly appreciate Krugman’s help with the spin, which is basically “nothing to see here!”
— Gege, Queen of GIFs, Esq. (@Pomquat) July 13, 2022
This foundering administration will be sending Krugman a thank-you note very soon.
‘It’s all good. Rampaging inflation is killing economic growth and crippling spending. That’ll bring down the ole inflation.’ https://t.co/lhHvprTyAW
— Equality 7-2521 (@Prometheus_Ego) July 13, 2022
how this man has any type of prominence is beyond me. https://t.co/IpnB4yQUDm
— Chris (@ChrisHerc) July 13, 2022
Remember when Krugman predicted the markets would likely never recover after Trump was elected? He only missed that by one president.
Company man is doing his job, same guy who said Obamacare will definitely save each person $2,500 and you’ll be able to keep your doctor https://t.co/u0kq6VKyS8
— TONY-O (@MojoFilter64) July 13, 2022
https://twitter.com/RCuzino/status/1547208079330140160
You're doing just great, Paul. https://t.co/QZpWPXWxgB
— Stephen L. Miller (@redsteeze) July 13, 2022
Being so consistently wrong must be a requirement to maintain employment as a New York Times economist.
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