Skip to comments.Psst! US Inflation Is REALLY >11% YoY (Not The Stated 6.9% YoY)
Posted on 12/10/2021 2:13:54 PM PST by Browns Ultra Fan
Earlier today I wrote about the horrible November Consumer Price Index (CPI) print of 6.9% YoY.
But that 6.9% YoY is very misleading because of the strange way the Bureau of Labor Statistics measures the largest asset in most households’ expenditures: housing.
The BLS measures inflation in housing using the Shelter measurement. Which was only 3.88% YoY. The problem is that the Case-Shiller National Home Price Index was 19.52% in its last reading. That is quite a discrepancy.
So, if we substitute the Case-Shiller National home price index for the CPI Shelter, we get an inflation rate of greater than 11%.
And with the Zillow Rent for all homes index growing at 11.2%, this feels more like we are being hit over the head with. Or like trying to eat raw oyster stew … when the oyster fight back.
Here is a video of The Federal Reserve and the Biden Administration trying to control inflation.
(Excerpt) Read more at confoundedinterest.net ...
Take out the cost of food, fuel and anything else that has gone up; no problem!
My personal basket of goods includes Food and plenty-o-gasoline.
I don’t know my personal monthly Y/Y inflation but I’m gonna guess that it’s WAY over 7%.
My natural gas cost per therm nearly doubled from this time last year. Staying warm in winter is kinda fundamental.
The MSM let Joseph Stolen and the rest of the rats get away with taking out food and fuel prices when calculating the Inflation rate. Of course the inflation is twice what they claim.
In short, we’re going to see a rapid rise in interest rates in an attempt to curb inflation. 💸😒😑🙄
I’m retired, didn’t buy a house, car or major household item. My inflation rate might be 10%+. The family that bought a house or car or changed their apartment probably doubled my rate.
Outstanding scene! 😅
I bought a gallon of concentrate weed killer fall 2020 It was $26.00
Now it is $39.00
13.00 increase in one year.
We’re getting back to the Carter years!
I hardly use any nat. gas during the 6 mostly warm months.
I guess that price is going to loom big on the inflation radar starting this month and going forward.
“In short, we’re going to see a rapid rise in interest rates in an attempt to curb inflation”
If we raise interest rates the cost of our nations national debt will increase and not be met, no one will be able to afford a home or new car.
If we raised interest rates the economy would turn into a depression.
We are really caught in a bad way.
Why is housing inflation so much lower than Case-Shiller? It’s not a government conspiracy, but it is a problem. See, for everyone who ISN’T buying a new home, their housing cost stays what it was: 0% inflation. So housing inflation gets distributed over the length of time which people own homes. IOW, we’ll be seeing this housing inflation for 30 years.
There is no doubt that these (all?) agencies manipulate their stats. If they could get away with it they’d say inflation was 1.4%. But that’s too obviously manipulative. Even Congress does it, trying to force the CBO to score costs of bills lower than the true cost by “phasing out” programs in the bill that they know will get reauthorized in the future.
That said, I am not sure you can count the home sales price index as Shelter. Sure, for new home buyers it’s a cost. But for renters and existing home owners it’s just equity... and could be temporary.
Personally I think inflation really is over 10% when you strip out all the manipulations. In my business, over the last year, everything we buy is up 15% or more on some items vs a year ago. These input costs have to be eaten by me or passed on to the end user.
I’m waiting for the disco inferno!
Where I live in mtns people are cutting wood for winter.
I would not be surprised it Biden banned wood burning.
A lot of the stuff that I buy regularly has literally doubled in price since this Covidiocy began. Some stuff up ~25%, Some stuff 0 to just a few percent.
But, the way things are going, we will soon be lucky to be able to buy a lot of the absolute necessities at any price.
Wood stoves that produce smoke particulate greater than a certain size are already illegal to manufacture.
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