Biden inflation too big to ignore

 PJ Media:

Prices for consumer goods and services, excluding food and energy, shot up 0.9 percent in June, the Bureau of Labor Statistics (BLS) reported on Tuesday. This increase in the Core Consumer Price Index (CPI) far outpaced what economists expected. This ominous inflation warning sign suggests that President Joe Biden’s profligate government spending may usher in a new 1970s-style stagflation.

The CPI for all items rose 5.4 percent for the 12 months ending in June 2021, BLS reported. It has increased every month since January, when the 12-month change had been 1.4 percent. The index for all items minus food and energy rose 4.5 percent over the last 12 months, the largest 12-month increase since the period ending November 1991.

The energy index rose a whopping 24.5 percent over the last 12 months, and the food index increased 2.4 percent.

Economists had predicted a 0.4 percent monthly CPI index, up from May’s monthly change of 0.7 percent. The 0.9 percent figure more than doubled expectations.

Used car prices increased 10.5 percent in June, month over month, compared to 7.3 percent in May and 10 percent in April. In annual terms, used car prices jumped a whopping 45.2 percent. By contrast, new vehicle prices grew 2 percent last month. While that seems a pittance compared to the used car price jump, it represented the largest one-month increase in 40 years.
...

 The energy index will have a cascading effect on other prices just getting goods to market.  It is also too big for "fact-checkers" to continue pushing their false narrative that it is just caused by increased demand.

The used car index is rising rapidly because of the shortage of new cars.  The new car shortage is caused by a shortage of computer chips needs for their operation.  It is a great time to be selling a used car if you have one you want to get away with.  If you can find a new one that you like in stock you might be able to make a good deal because the dealers are looking for used cars.

The food prices are harder to ignore.  I notice that Walmart is doing a better job of keeping its prices lower than the competition so far.

It is the highest rate of inflation since 2008.

See, also:

Inflation accelerates to 5.4% in May as overheating fears swirl

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