Inflation is Still a Major Problem in the American Economy
According to Bureau of Labor Statistics (BLS), inflation grew faster on a monthly basis in January, exceeding investor expectations as prices continue surging upwards
Prices increased 0.5% on a monthly basis after falling by 0.1% in December, while increasing 6.4% on an annualized basis from 6.5% in December, per figures from the BLS. Inflation exceeded economists’ expectations, with a Dow Jones poll projecting a 0.4% monthly increase and 6.2% annual increase, per a CNBC report.
Inflation reached a 40-year official high of 9.1% in June. inflation has tumbled each month since, but remains more than triple the Federal Reserve’s target inflation rate of 2%, per a report by The Wall Street Journal.
The price of food continued to increase in January, rising by 10.1% on a year-over-year basis from the same period one year ago, per the BLS. Since reaching a 40-year high of 13.5% back in August, the inflation rate for food at home has slightly leveled off, but still hovers around at 11.3%.
Energy costs outpaced total inflation, rising 8.7% overall, with the cost of electricity elevating 11.9% on a yearly basis, per the BLS report. In addition, prices for shelter increased faster than the average, rising 7.9% in January on a yearly basis, with rent costs moving upward 8.0%.
Inflation is here to stay in America. Establishment takes on this development should be ignored. For one, the ruling class does not understand why we’re in this inflationary crisis. America’s current inflationary bout is the product of easy money and too much money chasing too few goods — a development that’s the product of heavy-handed regulations that have caused supply side shocks.
The only way to truly get out of this inflationary pickle is to restore sound money and downsize the state — two things that the current ruling class in the US does not want to pursue. A new nationalist/libertarian ruling class will need to emerge to make this vision a reality.