Yesterday, data on the wholesale “Producer Prices” was released showing an 8.6 percent increase in prices for final demand products {DATA HERE}. That is the increase in cost within the system of bringing products to market.
Today, the “Consumer Price” data was released showing a massive 6.2 percent increase in prices {DATA HERE} for goods that are currently available for sale. The overall rate of inflation is now 6.2% year-over-year.
When you overlay inflation atop wage growth, the Bureau of Labor and Statistics (BLS) report now shows a decrease in “real wages” of 1.6 percent {DATA HERE}, which is the increase in weekly pay minus the additional costs to buy stuff. The working class is losing ground rapidly. Things are ugly and they are fixin’ to get uglier.
Before getting to the part where we can explain exactly how much more we can predict to pay for current products in 90 days (yes, that approximation is possible), first lets look at the actual data on the current inflation rate for products we are buying today. [Table 2] is the easiest reference for category specific review.
Overall, the prices for groceries (food at home) went up 1.1% in October and 5.4% for the year. However, several products in the supermarket have jumped massively. Beef jumped 1.9% for the month and is 20.1% higher overall. Bacon went up 2.1% for the month and is now 20.2% higher for the year. All processed foods increased at a rate about four times higher than fresh unprocessed foods.
Fuel oil went up 12.3% in October and is now 59.1% higher for the year. Unleaded regular gasoline went up 3.9% in October and is now 51.3% higher for the year. Piped natural gas went up 6.3% for the month and is now 28.1% higher for the year. Used vehicles are now 26% higher than last year, and new cars went up roughly 10%. You can scroll down Table-2 to see each category (second and third columns show year and monthly increases). It’s unnerving to see the scale of inflation while knowing it will get worse.
One kitchen table way to estimate the current inflation that is already in the system but has not shown up in the retail end is to take the wholesale inflation (PPI 8.6%), deduct the current retail inflation (6.2%), and that gives you an estimated aggregate gap of 2.4% between them. That 2.4% is essentially an inflation lag already in the supply chain at various stages (raw material, intermediate, final). Bear with me…
The 2.4% difference (8.6 – 6.2) is a lag that will show up in approximately 90 days. The difference between the wholesale inflation and retail/consumer inflation will eventually reach the cash register in higher prices. The 2.4 difference is also a good way to approximate how high finished processed goods will go.
The difference between the wholesale rate of inflation and retail rate of inflation (as a percentage) is around 28%. That’s a good generalized way to approximate what the future price will likely be for any given item, call it a widget, in the consumer segment.
• Current widget at $17.00 + 28% gives you an approximate for future widget at $21.76
• Current bread at $4.69 + 28% gives you an approximate for future bread at $6.00
Using this method, you can approximate the upper price likelihood for a heavily processed product. The more an item needs to be processed, the more hands that touch the product in the processing, the higher the end price will be. The more an assembly of individual processed parts is needed in order to generate a finished good, the higher the end price will be, etc. An increase of 28% will be an approximation for the future prices (roughly 90-120 days) of a heavily processed item.
Grocery prices rose 1.1% last month, while the cost of eating out was up 0.8%, the largest monthly gain in 40 years.
MSNBC – Inflation across a broad swath of products that consumers buy every day was even worse than expected in October, hitting its highest point in more than 30 years, the Labor Department reported Wednesday.
The consumer price index, which is a basket of products ranging from gasoline and health care to groceries and rents, rose 6.2% from a year ago, the most since December 1990. That compared with the 5.9% Dow Jones estimate.
On a monthly basis, the CPI increased 0.9% against the 0.6% estimate. (read more)
It’s impossible for even Libtards to deny FJBs energy and economic policies have caused this situation.
The only fallback Libtards have is “muh green”.
Whatever PDJT did, it worked for our economy.
Whatever FJB is doing, it isn’t working for our economy.
No rocket science required, as it’s the results that matter.
Unfortunately, it IS possible for libtards to deny their lieing eyes; they do it ALL the time.
Firstly, the 20 percent that are IDEOLOGUES, simply don’t CARE.
As for the rest, they will continue to buy in to the false narratives for some time yet.
They still believe PDJT is a Russian spy, Jessie Smollet was acosted by guys in MAGA hats, you can change your gender if you decide to, aborting your baby isn’t murder, but all MUST be vaccinated.
Believing the worsening economy is all Trumps fault, and higher gas prices are because of those Opec barstuds, is “childs play” (when it comes to believing fantasy false narratives).
The propaganda media keep telling the sheep that inflation is not that bad and will be much lower soon. The brainwashed idiots who are voting for this deserve what they get. Unfortunately the sane will suffer along with them.
The welfare state creates an immovable, inexorable core of voters who will always vote for the government party. In America, now, black women would vote for the Democrat Presidential candidate if they run James Earl Ray.
Federal government employee and
Democrat are now synonyms. Nothing more corrupts any concept of a true pluralist democratic process than this.
The federal bureaucracy must be de-centralized. Their is no rational reason, in the modern computerized world, why the federal bureaucracy cannot be spread across the nation. The bureaucracy could be inserted into the poor areas of the country (Detroit, Baltimore) on the grounds of economic stimulation. What Democrat could object?
Not to nitpick, Sundance, but your article title is highly misleading
You could correct it to:
“Consumer PRICE INDEX (CPI) in October Doubled From September – 6.2 Percent ….”
… and it would be truer to what you’re actually reporting
Remember – the CPI statistic EXCLUDES FOOD AND FUEL
… and is a vast understatement of “Consumer Inflation”
Consumer inflation is running far higher than the CPI, simply because of the way CPI is defined to exclude large portions of actual consumer spending
Who’s got a pointer to an alternate inflation index that’s more realistic?
From Yahoo ( ?) on this exact topic :
”At the same time, the economy is managing to sustain its recovery from the pandemic recession, and consumers, on average, have plenty of money to spend. That is in contrast to the “stagflation” of the 1970s, when households endured the double hardship of high unemployment and high inflation.
Many Americans are also receiving healthy pay raises, especially workers at restaurants, hotels and entertainment venues, where hourly wages are up more than 10% from a year ago. And families, on average, have built up substantial savings from stimulus checks and enhanced unemployment benefits.
“We’re still looking at an economy in a strong position,” said Sarah House, a senior economist at Wells Fargo. “The consumer is still going out and spending, which is why we are seeing the price gains we’re seeing.”
https://www.yahoo.com/finance/news/us-consumer-prices-soared-6-133914207.html
Yahoo is to finance as CNN is to truth. So the FED printed money for stimulus checks and enhanced unemployment, money for nothing productive. Good recipe for inflation, now there’s another 1.2 trillion for “infrastructure” to be followed by a couple trillion on BBB giveaways. That much printed money going down a rat hole will keep inflation popping.
LOL to Wells Fargo. Consumers are stocking up like their lives depend upon it. Without The Great Migration from blue states to red states, and without the panic buying in spades this time, there would be no spending. People are spending now to beat inflation and get themselves situated for the coming civil war. I expect we see a HUGE DIP in consumer spending, say January… and the cold, dark, winter will be upon us. We’ll all be huddled at home cleaning our weapons by candlelight.
I know !
The gaslighting is so blatant !
I agree with you.
says the bank that has customers call ahead to withdraw large money, and then has to order the money to the bank to provide.
We have been robbed. and they are CONTROLLING US to keep us from finding out – there is no money.
I am lactose intolerant and have been using plain unsweetened soy milk for years. Today when I checked price where I have been ordering it, online by the case, it was up 50%!! I couldn’t believe it! It already had gone up in price a few years ago. So I didn’t buy it yet…check a few other places. I do not like any of the other options; coconut milk tastes like coconut, almond milk has tons of sodium in it for some reason and more calories; oat milk is disgusting. /
My daughter is also lactose intolerant
The lactose free 2% milk I buy for her is $3.49 a half gallon
Up from 2.99 last year
All due respect to those who are lactose intolerant, but I am B.S. intolerant, and the Brandon admin, and their mouthpieces are making me physically ILL!
Right now what used to be around $3.49 is $5.00…no way I am paying that. I have tried lactose free milk; perhaps I will go back to that, I forgot about it because the milk flavor/smell was really not that great since being off it for so long. Thanks for reminding about it; I may switch to that! I will check Friday at the grocery store! You might be a lifesaver!
That price you are paying is what is now $5.oo for the soymilk in the aseptic containers (do not need to refrigerate until opened so I could stock up),
littleflower: In addition to higher production, packaging and transportation costs, a lot of soybeans are going to China, instead to U.S. markets.
This price increase started when Trump was in office. And his big thing was selling soybeans to China. I should have written him and asked about why the increase in the US. It was because it was being sold to China….I guess Trump did not realize some consumers of soybeans live in the US. He was always worried about the farmers never about people like me.
You can buy organic soybeans in bulk through Azure Standard and I assume with a good food processor you can make your own soy milk. If you have land, you can plant your own soybeans if in the right climate. Just a thought.
If inflation is at 6.2% then someone working hard and earning a modest income will need a salary increase higher than this to cover both inflation and the additional tax on the increase. I believe that inflation is being underestimated for political reasons and that an increase of 10% this year will barely keep many people at the same level.
its an illusion
Eye steal your money from the bank. then print and loan money back to others to replace what EYE stole. Then as people are finding out EYE manipulate the inflation, and blameshift the future realization, –> to COVID causing it… all the while terrified you will find out before EYE have injected you into handicapped status.
vegetable brained immune systems will never rise up against Eye.
purge your military.
purge your children.
Inflation is – too many dollars chasing too few products because leaches on the government dole don’t add anything.
So here’s the crux of the entire Fed Monetary Policy – “The committee will aim to achieve inflation moderately above 2 percent for some time so that inflation averages 2 percent over time and longer-term inflation expectations remain well anchored at 2 percent” – is this a joke ?
repo all possessions of the build back better cabal and return it to the treasury of each appplicable country.
I think and believe that is already in the Plan for our Country and the World. There is a lot of talk and other actions currently taking place to bring about a Global Reset and All Currencies will return to Precious Metal backing and returning to the Sovereign/Original US Constitution, as the “Corporation USA Constitution ” is Completely Bankrupt as of 10/17/21.
Inflation has taken away all the wage gains for workers and then some under the Trump Administration. Thanks Brandon for nothing!
https://cnb.cx/3ok6niK
The Secrets of the Federal Reserve-key excerpts
https://thirdworldtraveler.com/Banks/1930s_TSOTFR.html
During this tragic period [the Depression], chairman Louis McFadden of the House Banking and Currency Committee continued his lone crusade against the “London Connection” which had wrecked the nation. On June 10, 1932, McFadden addressed the House of Representatives: “Some people think the Federal Reserve banks are United States Government institutions. They are not government institutions. They are private credit monopolies which prey upon the people of the United States for the benefit of themselves and their foreign customers. The Federal Reserve banks are the agents of the foreign central banks. Henry Ford has said, ‘The one aim of these financiers is world control by the creation of inextinguishable debts.’ The truth is the Federal Reserve Board has usurped the Government of the United States by the arrogant credit monopoly which operates the Federal Reserve Board and the Federal Reserve Banks.”On January 13, 1932, McFadden had introduced a resolution indicting the Federal Reserve Board of Governors for “Criminal Conspiracy”. “Whereas I charge them, jointly and severally, with the crime of having treasonably conspired and acted against the peace and security of the United States and having treasonably conspired to destroy constitutional government in the United States.”
Books/Articles on the Federal Reserve
https://thirdworldtraveler.com/Federal_Reserve/Federal_Reserve_page.html
Thomas Jefferson – If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and the corporations which grow up around them will deprive the people of all property until their children wake up homeless on the continent their fathers conquered.
“When a government is dependent upon bankers for money, they and not the leaders of the government control the situation, since the hand that gives is above the hand that takes… Money has no motherland; financiers are without patriotism and without decency; their sole object is gain.” – Napoleon Bonaparte, Emperor of France, 1815
***
I think the private bankers who own the Federal Reserve are planning on destroying the dollar in order to force the American people onto their new digital currency/transaction system (cashless society). Catherine Austin Fitts says this is not really a currency system, but more like an account at the company store. She says the model is slavery–they will simply turn off your money if you speak out or perhaps if you aren’t up to date on your injections.
We need a new monetary system. We cannot accept their digital system because that will be the end of freedom. Unfortunately, the puppet whores in Congress don’t even understand the monetary system, and have already introduced “Banking for All” bills in the House and Senate, which according to Lynnette Zang, are one of the steps in the transition from cash to cashless society. Former Congressman Dr. Ron Paul was the only one who truly understood the evil, fraudulent, debt based monetary system of the private bankers at the Federal Reserve.
arrest everyone that has been the bilderburg (i dont care how its spelled), to Davos (same), and a member of the council of foreign relations.
interorgate everyone of them and upon completion free those that cooperate, and nuremburg all that had anything to do with playing games with people’s lives.
collapsing countries- economic hitmans – enslaving countries through debt slavery via fake vaccine purchases thru Covax.
I have also been reading about the history of the Federal Reserve, interesting how 4 US Presidents where assasinated after wanting to do somthing about the Frederal Reserve.
James Garfield became President in 1881 with a firm grasp of where the problem lay. “Whosoever controls the volume of money in any country is absolute master of all industry and commerce… And when you realise that the entire system is very easily controlled, one way or another, by a few powerful men at the top, you will not have to be told how periods of inflation and depression originate.”assassinate weeks after stament 1881.
A small point. The Federal Reserve proper did not exist before the Federal Reserve Act of 1913.
Otherwise, you would undoubtedly be correct in reference to assassinations in connection to the succession of Central banks of the United States of which the Federal Reserve is the third.
You’re correct about the Federal Reserve didn’t exist, But, The Central Banking System did. The Central Banks are all owned by the Rothschilds, Vatican, City of London (queen.)
I believe you are correct, but, I also believe the Evil/Criminal Globalist have already lost that battle/War and Pres Trump and the Good Guys (Global leaders and Militaries) have won, and will bring about a Global Reset In Favor of the ALL Good People Around The World. Have a Good Evening and God Bless.
a year ago during the height of covid things werent even this bad.
build back better = destroy all countries and surrender them to a Covid Round Table.
Build Back Better was the Central Bank, party of Davos, Great Reset slogan before Biden adopted it. When he started using it when campaigning, my jaw dropped.
If you like this inflation (and it’s going higher, much higher) then keep voting Democrat. They are doing this intentionally with their insane policies. Wait until you see the cost of heating your home this winter. If you’ve had enough of this craziness, vote ALL Democrats out.
Doesn’t Trumps policies look good now?
When Dems ignore or belittle US citizens about their concerns, it is to obtain an ultimate goal or end result.
Why would Dems ignore this kind of inflation knowing the Fed cannot raise rates with our current indebtedness?
What’s the end game here?