The Miracle of The Orange 🤡 Economy, Part Infinity
Core inflation rate hit 3. 4% in May, highest since October 2023, Fed’s preferred gauge shows The core personal consumption expenditures price index showed a 3. 4% annual rate after rising 0. 3% for the month. The core annual reading was the highest since October 2023. The Fed’s primary inflation gauge also showed an annual rate of 4. 1%,…
Fed. Secretary Kevin WarshCore inflation rate hit 3. 4% in May, highest since October 2023, Fed’s preferred gauge showsThe core personal consumption expenditures price index showed a 3. 4% annual rate after rising 0. 3% for the month. The core annual reading was the highest since October 2023. The Fed’s primary inflation gauge also showed an annual rate of 4. 1%, the highest since April 2023. Even with the elevated inflation levels, consumer spending for the month came in stronger than expected. Personal consumption expenditures rose 0. 7% for the month. [Snip]The Federal Reserve’s primary price gauge rose at its highest level since 2023, reinforcing the central bank’s recent tough talk on inflation. Excluding food and energy, thepersonal consumption expenditures price indexshowed a 3. 4% annual rate after rising 0. 3% for the month, both in line with the Dow Jones consensus. The annual core reading was the highest since October 2023. I love that “excluding food and energy…” bit. As a Scissorhead once said (and please take a bow in the comments),“…and Magda Goebbels made a great strude!”Rememberthe difference between PPI and CPI(from earlier this month)“PPI is wholesale inflation, in other words, what businesses pay before passing costs on to consumers. Consumer inflation (CPI) is currently running at 4. 2%. If PPI is rising 1% per month, we could be looking at PPI in the 10-12% range by year’s end, with consumer inflation hitting 6% or higher. That’s not a prediction designed to scare you — that’s just math. ”So that 0. 7% for the month is awfully close to the 1% mentioned above (if I am reading this correctly and that is never a sure thing when it comes to economics), andwe’re totally eff’ed in the dark. About tengrainFully caffeinated with 2X the sugar, unabashedly liberal. An award-winning blogger (Americans United’s First Freedom First).