Axios has the scoop on tomorrow’s new inflation number and it’s not good.
According to FactSet analysts, they expect the new rate to rise by 8.4 percent. This is the highest inflation rate since December 1981. This is an increase from the 7.9 percent rate last month. This could be due to high gas prices, which have since fallen slightly. The forecast is still 6.6 percent, which is the highest since August 1982.
While the Biden team authorized the release of one million barrels per day from the Strategic Petroleum Reserve for 180 days, it may have a small effect on prices. However, he has not done anything to alter the general trajectory and cause of the inflation rise. He is essentially emptying the reserve, which was supposed to be used for emergency situations — and not to do the right thing to help the country in order to save his political career before the midterms. It won’t solve the problem.
Services, which exclude energy products, account for 57% of CPI. Durable goods only account for 13%. It wouldn’t take long for services to supplant goods and prevent overall inflation from falling.
This is an example: Rent prices have increased in the past three months and rose 0.6% in February. This is due to constrained housing supply and rising incomes. It will not allow inflation to fall meaningfully so long as it continues.
For services such as hotel stays and health insurance, prices are rising. With the end of the pandemic, consumers may shift to services as they are more affordable. Companies that offer services also want to offset rising wages and benefit from the strong demand.
Bottom line: While the high overall inflation number will dominate Tuesday morning’s headlines, the bigger question is whether services inflation continues to accelerate despite the decline in durable goods inflation.
Even MSNBC recognized that this was a major problem for Democrats in the midterms. It’s not about messaging, which can be hitting people directly in the pocket. It’s about bad policy and people are aware of it. Lauren Leader, MSNBC’s commentator, outlines the problem. You can see the panic among MSNBC leftists and the nervous laughter. Sometimes it’s a huge 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 occurred while the Democrats were still in power. Al Sharpton stated, “You told us to put you in power, but we did it. Now I can’t afford the lifestyle I live.” Sharpton may have been right in this instance. The Democrats are now the ones to blame. Unless they make changes in their policies that have made matters worse, you can count on them getting their heads in November.
It’s also interesting to see how it’s now a problem, even though it has been a problem for Americans since last January. They are just acknowledging that it is a problem now because they know it will hit them hard in the midterms. They don’t care about how it has been hurting Americans over the years.