By Duncan Smith
So now you know: It’s true the things you most need and use in your daily life are a helluva lot more expensive than they were at any time under the Trump administration.
We’ve got official confirmation of that now, per The Associated Press:
American consumers absorbed another surge in prices in May — a 0.6% increase over April and 5% over the past year, the biggest 12-month inflation spike since 2008.
The May rise in consumer prices that the Labor Department reported Thursday reflected a range of goods and services now in growing demand as people increasingly shop, travel, dine out and attend entertainment events in a rapidly reopening economy.
The increased consumer appetite is bumping up against a shortage of components, from lumber and steel to chemicals and semiconductors, that supply such key products as autos and computer equipment, all of which has forced up prices. And as consumers increasingly venture away from home, demand has spread from manufactured goods to services — airline fares, for example, along with restaurant meals and hotel prices — raising inflation in those areas, too.
In its report Thursday, the government said that core inflation, which excludes volatile energy and food costs, rose 0.7% in May after an even bigger jump in April, and is up 3.8% over the past 12 months.
It has never made any sense for the official inflation watchers to exclude “volatile food and energy costs” because food and gasoline are what most Americans need and use every single day of their lives and as such, these two line items affect personal and family budgets the most (and the fastest). Almost no one buys lumber, takes a trip, or dines out every day.
The point is, the Biden regime and Democrats are feeding this cycle.
Offering too-generous unemployment benefits (and for too long) has created a labor shortage that is leading to the dearth of goods (and higher prices for those goods in part due to companies having to pay more wages to attract a workforce).
None of this resolves soon. If at all.
And it’s every bit by design.
President Trump is Breaking Down the Neck of the Federal Reserve!
He wants zero rates and QE4!
You must prepare for the financial reset