Posted on by Californiacontrarian

“Transitory” … A New Definition ?

From the Wall Street Journal: 

“Is inflation still “transitory,” as the Federal Reserve and White House like to say? Not if you’ve been visiting the grocery store, gas pump, online retailer, or anywhere else across the U.S. economy. The Labor Department said the consumer price index rose 0.4% in September, up from 0.3% in August. This means the price level has increased 5.4% in the last 12 months and 6.5% on an annual basis so far in 2021. This is the largest year-over-year increase since 2008, and the details in the report add to the evidence that inflation is likely to be persistent.”

From Breitbart:

“Food prices jumped 0.9 percent for the month, with food at home rising 1.2 percent. Compared with a year ago, food at home costs 4.5 percent more. The Department of Labor helpfully notes that prices are up in all 12 of its grocery store categories.

It’s no wonder that the New York Fed’s survey of consumers showed inflation expectations hitting a new record high. Consumers expect higher inflation because they are seeing it with their own eyes and feeling it in their lightening wallets. It’s not just grocery stores, of course. The prices of clothes, shoes, furniture, appliances, and cars all have seen serious rises year over year.”

However, brace yourself as this transitoriness” is about to get worse.

If you thought inflation was a problem this summer and fall, just wait until you try heating your home this winter.

At least, that appears to be the warning from the U.S. Energy Information Administration in its new Winter Fuels Outlook report released on 10/13/21.

Americans can expect their home heating bills to jump significantly over the winter months compared to last year, the EIA reported — with some citizens possibly paying 54% more.

(Natural gas users can expect to spend about a third more than they did in 2020-21, while electricity users will see a 6% bump. Those using heating oil should expect to pay more than 40% more, and propane users will really get the shaft, with estimates projecting a 54% hike in heating prices.) 

The Department of Labor issued its twin inflation reports, known as the Consumer Price Index and the Producer Price Index, this week. They both showed the prices of many popular holiday gifts have shot up over the past twelve months.

  • Toys, games, and children’s vehicles: + 5.8 percent.
  • Sporting and athletic goods: +12.0 percent.
  • Sports vehicles including bicycles: +8.9 percent.
  • Televisions: +12.9 percent.
  • Pets and pet supplies: +4.2 percent.
  • Home electronic equipment: +6.4 percent.
  • Home appliances: 5.0 percent.
  • Major appliances: 9.7 percent.
  • Cameras and photographic equipment: +6.9 percent.
  • Computers and smart home assistants: +8.5 percent.

From Breitbart:

“The economy is supply-constrained and likely to remain so for the foreseeable future. We had Atlanta Fed President Raphael Bostic declare that the supply chain “bottlenecks” were probably going to stick around, and therefore inflation was unlikely to be transitory.”

Hmmm! … “unlikely to be transitory!” Perhaps a new definition of the word!

10/19/21

www.californiacontrarian.com

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