Inflation is running rampant under the new administration. In fact almost everything you buy today is more expensive than it was just a year ago, or even a few months for that matter.
In fact, under Joe Biden, inflation is higher than it’s been since 1982.
To put another way, Americans are becoming poorer, faster, than any other time in over 40 years.
Recently, the Bureau of Labor and Statistics released updated Consumer Price Index (CPI) numbers, and they went viral. (The CPI measures the cost of a basket of goods and services in an attempt to determine how much more expensive things are for Americans year over year.)
According to the CPI, inflation has increased by 6.8% in the last year. But can you trust those numbers? Are they an accurate representation of how much your expenses have gone up in the last year? No, they’re not. The numbers are bogus. Reality is much worse than that.
Because the CPI isn’t designed to tell you the truth. It’s designed to mislead you into thinking things aren’t nearly as bad as they really are. It’s a rigged government number.
For example, on average, gas prices in the US have increased from $2.20 to $3.49 in just the last year. That’s an increase of 58.1%. A far cry from 6.8%.
Let’s look at some more data directly from the recent CPI report to confirm just how much more expensive the following items are year over year.
Natural Gas – 25.1%
New Cars – 11.1%
Used Cars – 31.4%.
Meats, Poultry, Fish and Eggs – 12.8%
Beef – 20.9%
Lumber – 34.9%
Coffee – 108.2%
Corn – 39.3%
Sugar – 33.1%
Wheat – 36.8%
Tell me again Mr. Biden how inflation is only at 6.8%.
But those are just the price increases we’re actually seeing. There is also something called “shrinkflation”.
According to the Corporate Finance Institute, “Shrinkflation is a form of hidden inflation. Instead of increasing the price of a product, something that would be immediately evident to consumers, producers reduce the size of the product while maintaining the same price”.
Simply put, it’s selling you less of an item for the same price as before.
Below are just a few examples of “shrinkflation” in action.
Cinnamon Toast Crunch by General Mills has shrunk from 19.3oz to 18.8oz.
Doritos by Frito Lay have shrunk from 10.5oz to 9.25oz.
Tillamook shrunk it’s ice cream cartons from 56oz to 48oz.
And the list of manufacturers goes on and on. But hey, can you blame them? Their production costs are skyrocketing just as well.
Let’s take a look at real estate now. Prices have risen by 19.51% on average per the S&P CoreLogic Case-Shiller Indice.
But some real estate markets are putting that number to shame. Real estate in Tampa has increased on average by 25.9% in the last year. San Diego is up 26.2% and Phoenix has skyrocketed by a whopping 33.3%.
Now keep in mind that the Fed’s inflation target is slightly above 2% per year. But we’re already well over 3 times that amount. And that’s using the government’s manipulated 6.8%. And December’s data is still outstanding.
So it seems that inflation is no longer transitory like Jerome Powell espoused back in June. On the contrary, a few weeks ago he came out and said, “We tend to use transitory to mean that it won’t leave a permanent mark in the form of higher inflation. I think it’s probably a good time to retire that word…”
So being that inflation is no longer “transitory” what is it?
It’s here to stay!
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