In the Socialist Paradise where I live, inflation (as reported by the government) was 56% last year. This year the projects are for an inflation of 85% or more. But, you, my dear friends, don’t have an inflation problem back there in America, do you? I Googled US Inflation this morning and found this graph:
Wow! 1.6% inflation last month. I guess those blood-sucking Social Security recipients (like me) won’t being getting any adjustment to their benefits this year. Unfortunately, according to this article, those fixed-income blood-suckers and most everyone else are going to be in for some sticker shock and the grocery store very shortly. (Keep in mind that the government’s reported inflation rate does not take into effect price changes in volatile things like food or gasoline.) Take a look at what is happening to these food commodities so far this year:
Cattle Hogs Grains Milk Coffee
+28% +25% 14% +17% +67%
Those increases should up in what you pay a the grocery store in April and May.
Why are these food commodity prices on the rise? The article linked above suggest it is due to speculators using the Feds easy money as the cause. I’m not buying that. The Fed’s Zero Interest Rate Policy( ZIRP) has been in effect for nearly five years now and the source the author used for the above table shows that these commodity prices were either flat or falling for all that time until just recently. It is more likely due to normal supply and demand factors than anything else.
At any rate, your 1.6% inflation rate is about to bite you in the …
Well, that’s what I’m thinking. What are your thoughts?