Inflation in America just hit another multi-decade high this month, rising to a whopping 9.1%, with former President Donald Trump ripping into Biden for the inflation disaster in one of his “Save America” statements, saying:
Inflation just hit ANOTHER 40-year high of 9.1%, which is terrible for our Country. Fuel prices up 60%, Airfare up 34%, Eggs up 33%—how can people survive this? How can businesses survive this? Our Country is so weak right now because the Radical Left Democrats have no clue what they are doing. All they want to do is “get Trump,” and they are willing to destroy our Nation to do it. America will not allow this to go on for much longer. Don’t vote for the Radical Left Democrats, vote for America First Republicans—Save America!
When viewed through that lens, the inflation problem is far, far more problematic for the average American.
Why? Because of how the number is calculated: the CPI, or consumer price index, is a selection of goods, not the overall cost of living in America measured month to month and year to year.
Commenting on that, my friend MacroConservative said:
This morning data from the Labor Department was released showing the Consumer Price Index, the Federal Reserve’s favorite gauge of inflation, reaching an astounding 41-year high of 9.1%. This beats May’s 40-year high reading of 8.6%. Prices have continued to increase across the economy perhaps most noticeably in gasoline which increased 11.2% from May.
It’s also important to note the criticisms of CPI as it measures what a “basket of goods” would cost a consumer. This measure is indexed for selected goods and may not actually reflect the true increase in the cost of living for a consumer. This is why people are confused when their gasoline costs have risen 60%, electricity 14%, housing 20%, etc., but the CPI only suggests 9.1%. So, the inflation of your true cost of living is likely much higher.
According to Peter Schiff, CEO of Euro Pacific Capital Inc., “The government always makes changes to their methods of measuring things, whether it’s GDP, or inflation, or unemployment. And they always tweak the numbers to produce a better result as a report card,” when discussing CPI. He further elaborated, “They’re the ones that are cooking the books to pretend that inflation is lower than it really is.”
A 9.1% CPI increase is painful enough and quite high.
But it’s only the start of the problem. Once the individual increases in the cost of some of the more common food items, necessaries like gasoline, and other items are taken into account, the economic pain the Bidenflation crisis is causing is all the more clear.