Axios has a scoop on the new inflation number that’s scheduled to drop tomorrow and it’s bad.
They’re citing analysts from FactSet that expect the new number to be 8.4 percent, the highest inflation rate since December 1981. That’s up from the rate from last month, which was 7.9 percent.
This could be due to high gas prices, which have dropped slightly in recent years. The forecast for gas and food is at 6.6 percent. This figure was the highest since 1982.
So while the Biden team ordered the release of a million barrels of oil a day for 180 days from the Strategic Petroleum Reserve and it might have a tiny effect on the prices, he hasn’t done anything to change the general trajectory of inflation — the cause for the rise to begin with. He’s just basically emptying our reserve which is supposed to be for emergencies — not to avoid doing the right thing for the country to save himself politically before the midterms. But it’s not changing the problem ultimately.
However, 57% of CPI is still attributed to services, not energy products. Only 13% are for durable goods. so it wouldn’t take much for the services sector to supplant goods, preventing overall inflation from coming down.
This is an example: In February, rent prices rose 0.6%. That reflects constrained housing supply and rising incomes — and so long as it persists will keep inflation from coming down meaningfully.
For services such as hotel rooms and health insurance, prices are rising. Consumers may be shifting their spending towards services due to the fading pandemic. This could lead to a rise in prices for limited supply.
Companies that offer services also want to offset rising wages and benefit from the strong demand.
Let’s just say that the overall high inflation figure will grab most headlines on Tuesday morning. But the important question about the outlook is whether or not services inflation accelerates even though durable goods inflation decreases.
Even MSNBC got that this was a big problem for Democrats for the midterms — it isn’t about messaging when it’s hitting people right in the pocket — it’s about bad policies, and people know it. Lauren Leader (MSNBC) explains the issue. Watch the panic here among the leftists at MSNBC and the nervous laughter — sometimes it’s a “problem problem.”
MSNBC panel calls Democrats’ midterms chances “a problem problem.”
“All of this happened while the Democrats were in power. You told us to put you in power, we put you in power, and now I can’t afford the life I’m living.” pic.twitter.com/jCIUZ3haIx
— RNC Research (@RNCResearch) April 11, 2022
“All of this happened while the Democrats were in power. You told us to put you in power, we put you in power, and now I can’t afford the life I’m living,” Al Sharpton said. Sharpton may have been right in this instance. It’s all on the Democrats now and unless they change their policies that have made things worse, count on them being handed their heads in November.
Pay attention to how Get it now it’s a problem when it’s been a problem for Americans since last year. They’re just acknowledging it’s a “problem problem” now because they see it’s going to hit them in the midterms hard. It’s not because they give a darn about how much it’s been hurting Americans all this time.