Inflation worse than predicted

 Washington Examiner:

Consumer prices increased 5% for the year ending May, according to a report released on Thursday by the Department of Labor.

The increased numbers from the consumer price index mark the largest 12-month increase since a 5.4% increase for the period ending August 2008. The numbers were also higher than what forecasters had estimated, which will likely bolster the fears that inflation might be getting out of hand.

Some economists are warning of too-high inflation and have cautioned that the economy is now at risk of overheating given the Federal Reserve’s monetary policies and the large amount of federal spending that has been infused into the economy, which is simultaneously experiencing a glut in demand as the pandemic abates.

...

I do not get the impression that the economy is overheating.  I get the impression that production in several sectors is continuing to lag as it did during the worst of the pandemic and that not enough people have gone back to work because the government has made it more profitable for them to stay home.  Federal spending is out of control and Biden is trying to make it worse which adds to the inflationary pressure.

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