Yesterday The Conservative Treehouse posted an article about the rapid increase in inflation in the past month.

The article reports:

The Bureau of Labor Statistics highlights some alarming inflation numbers today [Link Here] that are unfortunately, not unexpected…. unless you are a liberally trained economist (most of them) and so the results are surprisingly “unexpected”.    But the actual JoeBama-nomic policy is even worse because wages increased less than inflation increased, so real wages (actual purchasing power) decreased.  That spells trouble, Trouble.

First, it is important to know that BLS price survey data lags actual prices as felt today.  The prices you are seeing today/tommorrow at the store and gas pump will not show up in the rolled-up data for over a month….  So the data released today is unfortunately far behind what you are witnessing in real time.

Gas prices rose last month by 9.1%.  The year-over-year inflation number is an alarming 2.6 percent last month.  Keep in mind that retail grocery prices are not in the inflation number, and they generally follow the same price index as fuel; so it is safe to say monthly grocery store price increases are in the 8 to 10 percent range.

Part of the reason gas and food track together is fuel and energy prices are the #2 cost within the food sector.  With packaging prices increasing; with fuel prices and distribution costs increasing; with energy prices increasing; all costs associated with food production, processing, delivery, warehousing and distribution, all end up in the final price at the grocery store.

This problem with inflation is only going to get worse as the FED gets more involved (that’s coming), because interest rates are already disconnected from the economic costs associated with business investment. [Note: the Fed said last year that it would hold its benchmark interest rate near zero, for some time, even if inflation were to rise above its preferred rate.]  JoeBama is returning us to a “service driven economy”, and that is a problem for inflation.

President Trump’s MAGAnomic (USA First) increased wages and lowered prices (deflation) {Go Deep} but hurt Wall Street.  JoeBama’s globalist policies lower U.S. wages and increase prices (inflation) but increase Wall Street (via multinationals).

Economic policies have consequences. Shutting down pipelines has consequences. Runaway spending has consequences. Unfortunately we are stuck with those actions and their consequences for the next three years. We had four reasonably good years economically because we had a President who understood business and free markets. We currently have President who is moving us toward tough economic times, government overreach, and eventually socialism. Hang on to your wallet.