Welp.
From the WSJ: “U.S. consumer prices rose 5.4% in June from a year ago, keeping inflation at the highest annual rate in 13 years as the economic recovery gained steam”:
U.S. consumer prices rose 5.4% in June from a year ago, keeping inflation at the highest annual rate in 13 years as the economic recovery gained steam https://t.co/HbP9VXcWMp
— The Wall Street Journal (@WSJ) July 13, 2021
This is the “sharpest 12-month inflation spike since June 2008”:
BREAKING: U.S. consumers faced a third straight monthly surge in prices in June. A Labor Department report showed that consumer prices in June rose 0.9% from May and 5.4% over the past year. That's the sharpest 12-month inflation spike since June 2008. https://t.co/gdxfBUZmKK
— The Associated Press (@AP) July 13, 2021
But real earning actually dropped in June by 1.7%:
Consumer prices in the US rose by 5.4% in June – the highest level of inflation in 13 years.
Meanwhile real earnings *dropped* in June – real weekly earnings fell 1.4% while real hourly earnings fell by 1.7%.
And that's how inflation can really hit American workers.
— Josh Jordan (@NumbersMuncher) July 13, 2021
“Biden inflation is here,” tweeted the official account for Senate Republicans:
🚨 BREAKING.
The cost of living rose in June by the largest amount since 2008.
Biden inflation is here.
— Senate Republicans (@SenateGOP) July 13, 2021
Time to spin inflation as good news, right?
Love how the media are spinning inflation as a wonderful sign of economic progress under Biden pic.twitter.com/APNj3Kopub
— Joel Pollak (@joelpollak) July 13, 2021
The bad news, however, is that it’s not going away:
The good news: Economists expect a robust post-pandemic economic recovery. The bad news: They also expect elevated inflation to remain for several years https://t.co/Eg1sWMgvHh via @WSJ
— Mollie (@MZHemingway) July 12, 2021
Here’s the breakdown from the Washington Post’s Heather Long:
Here are the items really driving up inflation:
Car rental 87.7% (y/y change)
Used cars 45.2%
Gas 45.1%
Laundry machines 29.4%
Airfare 24.6%
Moving 17.3%
Hotels 16.9%
Furniture 8.6%
Bacon 8.4%
TVs 7.6%
Fruit 7.3%
Shoes 6.5%
Fresh fish 6.4%
New cars 5.3%
Milk 5.6%
Rent (OER) 2.3%— Heather Long (@byHeatherLong) July 13, 2021
And inflation is “not transitory if you need to buy stuff *today*,” like say a used car or a washing machine:
It's not transitory if you need to buy stuff *today.*
U.S. consumer prices rose 5.4% in June, keeping inflation at highest annual rate in 13 years. https://t.co/3445wzjIog via @WSJ
— Paul Vigna (@paulvigna) July 13, 2021
Yep:
How long does something have to be consistently taking place for it to no longer be considered "transitory?" Asking for a friend. And investors. And the Fed. #CPI #inflation
— Paul R. La Monica (@LaMonicaBuzz) July 13, 2021
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