“Inflation is Falling!” Ah, what?

Posted on by

I gotta love it!!

On November 16th a well-respected and popular economic writer from Fox Business produced an interesting article. The headline read, “Inflation is falling, but Americans are still paying an extra $680 a month due to high prices”

So what exactly would be your takeaway from that headline:

  • Inflation is under control?

  • Inflation is dropping dramatically?

  • Economic conditions are great again?

  • You are doing wonderfully with your finances?

Well, hang on just a second before you get too carried away with your economic emotions.

“The typical U.S. household needed to pay [only] $205 more a month in October to purchase the same goods and services it did one year ago…“ But she also continued with the full-picture. “Americans are paying on average $680 more each month compared with the same time two years ago.” Oh, okay, a little context I guess…a reality check…Biden Economics!

But she also went on, “The analysis suggests that while inflation has fallen from the highs of mid-2022, many families have yet to see material relief.”

Now we see some realism here…Americans are still getting hit hard in the pocket book and struggling. Duh! We already knew that…but notice how the headline and a superficial glance could give an impression that all is well, or at least getting better.

But then here is another kicker…”The Labor Department reported Tuesday that the consumer price index, a broad measure of the price of everyday goods including gasoline, groceries and rents, was unchanged in October from the previous month. Prices climbed 3.2% on an annual basis.”

Well folks…hang on a dang-gone second!

So I looked it up in real terms…towards the end of 2022 gas was $3.19 per gallon. It maxed out in 2023 at the end of September at $3.90 per gallon. Ah, that is more than a 22% increase in the price at the pump for the average US consumer. And I went to a person who has been tracking food prices in detail for more than 2 years now using a “basket” of normal food items. Depending on your location and brands, food is averaging a 20 – 32% increase PER YEAR for the last 2 years.

In all fairness to the article’s author, she did state, buried deep in the article, “…the cost of necessities like food, gasoline, rent and child care remain far more expensive than they were just one year ago.” Anyone else see the conflict in her statements?

No kidding!

So tell me…Where in the heck is the federal government getting this 3.2% inflation figure? Oh, wait…

Related Articles –

 

 2009 - 2023 Copyright © AHTrimble.com ~ All rights reserved
No reproduction or other use of this content 
without expressed written permission from AHTrimble.com
See Content Use Policy for more information.