Mixed Numbers
Lots of data released yesterday tied to the Consumer Price Index numbers for January…and as always, lots of possible interpretations.
POLITICO, however, was noteworthy in its lack of optimism…I happen to agree with them, but they certainly weren’t accepting the administration’s spin on all this.
Year-over-year prices rose 6.4 percent…less than in recent months, but still well above the desired 2.0 percent rate of inflation. And recall that when the Biden Administration took over, inflation was at 1.4 percent…it steadily rose until topping out last year at more than 9 percent. So yes, less of an inflation rate that in past months, but still more than four times the rate when this group got their hands on things.
But while the overall rate dropped a bit, the core inflation rate—for things we buy most often—actually increased by nearly a half-percent from the month before.
Specifically, housing, food, clothing and gas prices pushed inflation higher last month…this, despite the fact that cost of airfare, used vehicles, and health care dropped.
POLITICO and The New York Times both reported on how this high cost of food is especially difficult for seniors…not only in terms of sustenance, but in terms of increased social isolation.
This report is not good news for those who would like to see the Fed stop raising interest rates. The point of those rate increases is to control inflation…and it’s a mixed bag at best on that front.
Again, to see some media outlets that are generally friendly to the Administration report in contrast to the official government response is telling…especially with regard to how welcoming they’ll find the news of a Biden re-election announcement.
