Posted on 06/14/2023 4:02:08 PM PDT by ConservativeInPA
The federal government’s Bureau of Labor Statistics (BLS) released new price inflation data Tuesday, and according to the report, price inflation during May decelerated, coming in at the lowest year-over-year increase in twenty-six months. According to the BLS, Consumer Price Index (CPI) inflation rose 4.0 percent year over year in May before seasonal adjustment. That’s down from April’s year-over-year increase of 4.9 percent, and May is the twenty-seventh month in a row with inflation above the Fed’s arbitrary 2 percent inflation target. (More precisely, the Fed targets a two-percent rate in the PCE measure.)
Meanwhile, month-over-month inflation rose 0.1 percent (seasonally adjusted) from April to May. That's down from April's month-over-month gain of 0.4 percent.
———- break ———-
Meanwhile, May was yet another month of declining real wages, and was the twenty-sixth month in a row during which growth in average hourly earnings failed to keep up with CPI growth. According to new BLS employment data released earlier this month, nominal wages grew with hourly earnings increasing 3.4 percent year over year in May. But with price inflation at 4.0 percent, real wages fell again.
(Excerpt) Read more at mises.org ...
Have you had a 4% raise?
Un freaking real,this only occurs when you have isolated GOVERNMENT employees (who never worry about getting paid) crunching B.S. data ....they attribute their application of new math by stating “energy” prices decreased. So hey it’s all good again. I LOATHE my federal government to no end. Self serving / self perpetuating scum.
Government pukes probably did...ya know? Not us the unwashed.
Can someone please tell the grocery stores and gas stations that inflation is over???
Whadda bunch of useless morons...
To decrease the impact of inflation, look at CD’s, the market or high yield savings.
From what I read here inflation should not go away in just a few months after printing so much money and the fed buying the bonds. We could be in for some rough times, so police up that gear adrift and stand by for heavy rolls.
Inflation in the United States
https://imprimis.hillsdale.edu/inflation-united-states/
The “Gimmees” now include major corporations. It’s over.
We are cruising for some very difficult economic times as a nation. I firmly believe that the Fed did not raise interest rates today because it would cause more bank failures. Simple economics tells us that increased interest rates devalue assets. Work out the charts in your head.
In simple layman’s terms: Banks purchase bonds with depositors cash to generate income that has a higher return than cash holdings or the interest earned from lending. When interest rates increase, bond values decrease. When depositors want their money and banks do not have the cash because it is tied up in other investments, they sell some of their bond holdings and forgo the interest income from the bond. This works fine unless bond values substantially decrease. In the case of SVB, First Republic and Signature, the bonds they held lost over 40% of their value.
There are still many banks teetering on insolvency exactly for this reason.
Remember:
We make our money the old fashioned way, we earn it.
Wall Street can crap in one hand & wish in the other & see which hand fills up first.
The bankers have paused their rate hikes this month but will likely raise before the end of 2023.
It might take a couple of more “kick to the balls” before cheap money advocates realize that the cheap money era is ending & indefinite cheap money causes a lot of economic distortion.
Namely, a plethora of capital inflows to non producing enterprises.
A Primer on Credit Derivatives
http://www.ermsymposium.org/2009/pdf/2009-darcy-primer-credit.pdf
My AMD stock rose from $81 to $127.03 from May 2, 2023 in 19 days. It fell for about 2 weeks but is now at $127.33
The FED did not raise rates this time but may on July 25 to 26.
Notice that Smith Barney is no longer around. They got swallowed up by Morgan Stanley.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.