NY Times Front Page Wishes Inflation Away: ‘Hopeful Signs That Inflation Could Slow’

Wednesday’s New York Times couldn’t avoid the historically bad inflation figures, placing economics reporter Jeanna Smialek’s story on the front page: “Inflation Rate Hit 8.5% in Fastest Rise Since 1981.” But the text box went for wishful thinking: “March Data May Signal a Possible Peak,” and text tilted towards cheery spin for the Biden Administration given the hard facts, and Smialek barely pushed back on Biden’s pathetic “Putin’s price hike” propaganda.

Last month’s inflation in America was 8.5 percent. This is the highest 12-month rate since 1981. It was caused by an increase in gasoline prices. tied to Russia’s invasion of Ukraine added to sharp increases coming from the collision of strong demand and stubborn pandemic-related supply shortages.

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However, the news did not all look bad. The price of volatile fuels and food fell slightly in February due to a decrease in used car prices. This was taken by policymakers and economists as an indication that the rate of inflation in goods is starting to slow down after rising at a rapid pace over much of last year.

This paper went on an errand for the administration and sought out “several economists” in order to convince Americans that everything is ok.

Many economists believe that March could be the high water mark for inflation overall.. Price increases could begin abating in the coming months in part because gasoline prices have declined somewhat — the national average for a gallon was $4.10 on Tuesday, according to AAA, down from a $4.33 peak in March….

“These numbers are likely to represent something of a peak,” said Gregory Daco, the chief economist at Ernst & Young’s strategy consultancy, EY-Parthenon….

The White House would welcome any improvement in the situation, as inflation is a significant problem for Democrats ahead of November’s midterm elections. Public confidence in the economy has fallen sharply, and as rapid price increases undermine support for President Biden and his party, they could imperil their control of Congress.

That has handed Republicans a talking point, especially as prices overwhelm recent wage growth….

Like a good Democrat, Smialek let Biden’s “Putin price hike” lie mostly go unchallenged.

“I’m doing everything within my powers, by executive order, to bring down the prices and address the Putin price hike,”Iowan President Vladimir V. Putin was the subject of Tuesday’s statement by Mr. Biden in Iowa. Although inflation had been rising sharply prior to the conflict in Ukraine, the conflict has increased the pressure on commodity and energy prices.

There are several Positive signs suggest that inflation might slowFor the next few months.

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Economists have been worried about inflation for years, and this is despite the fact that gasoline prices are slowing down.

We’ll check back later to see if the paper’s optimism about the Biden Administration is warranted. Smialek finally got down to the harsh reality.

But even if inflation slows slightly, it is likely to spend 2022 running far above the Fed’s goal, which it defines as 2 percent on average using a related but more delayed price index.

What will happen to prices? How quickly and how far is it going to fall? Recent developments raise concerns about the possibility of an uncomfortably fast inflation.

Services costs, including rent and other housing expenses, are increasing more rapidly. These measures are slow and will likely be an important factor in determining inflation’s course.