Just the News is reporting today that the U.S. consumer price index rose 5% in May compared to the same time a year earlier.
The article reports:
The index represents the average change in prices of goods and services such as food, energy, housing costs, and others. It rose 5% in May compared to the same time year earlier. The increase was higher than expected, with the Dow Jones forecasting a slightly lower of 4.7% rise, according to CNBC.
The increase is the largest since 5.3% rise In 2008, just before the financial crisis causing the worst recession since the Great Depression.
The goods with the highest price increases were used cars and trucks, with prices surging 7.3%. Airline tickets were a close second, with prices climbing 7% from a year earlier as the pandemic cut air travel substantially. Food prices have stayed similar to those a year ago, up only 2.2%.
The article concludes:
People are also concerned over the rise of inflation that could be caused by President Joe Biden’s nearly $2 trillion COVID relief package and similarly priced proposed infrastructure package.
The Federal Reserve has not expressed alarm about the increases. Reserve Chairman Jerome Powell has said he expects the pressure on prices to be temporary as the economy reopens after the pandemic, according to Fox News.
Increased government spending will cause inflation. At some point the interest on our national debt is going to cripple our economy. At that point the dollar will be devalued to pay off the debt and the average American will be left with worthless money. The solution to this is to elect people to Congress who will be fiscally responsible. Currently there are actually a few Congressmen who are fiscally responsible, but not enough to make a difference.