The supposedly “transitory” inflation is continuing to look anything but, with the latest data showing inflation hitting a four decade high in January.
According to CNBC:
Consumer prices in January surged more than expected over the past 12 months, indicating a worsening outlook for inflation and cementing the likelihood of substantial interest rate hikes this year.
The consumer price index, which measures the costs of dozens of everyday consumer goods, rose 7.5% compared to a year ago, the Labor Department reported Thursday.
That compared to Dow Jones estimates of 7.2% for the closely watched inflation gauge. It was the highest reading since February 1982. Core inflation rose at its fastest level since August 1982.
Real hourly earnings -1.7%, 10th month in a row US incomes aren't keeping up with inflation
MMT takes another victory lap pic.twitter.com/lgFkPWtrEO
— zerohedge (@zerohedge) February 10, 2022
The burst in inflation has muted the sizeable earnings growth workers have seen. Real average hourly earnings rose just 0.1% the month, as the 0.7% monthly gain in wages was almost completely wiped out by the 0.6% inflation gain.
Last Friday, Biden admitted that Americans were getting “clobbered” by inflation, a pivot from his prior statements that the problem is merely temporary.
Matt Palumbo is the author of The Man Behind the Curtain: Inside the Secret Network of George Soros
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