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You Get Inflation! You Get Inflation! Everybody Gets Inflation! November 13, 2022

Posted by geoff in News.
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The Bureau of Labor Statistics released its CPI estimate this past week, and the Biden administration fired up their happy dance:

Following the release of the Bureau of Labor Statistics’s October CPI on Wednesday, which showed the CPI at 7.7% on the year, down from 8.2% last month, Biden crowed

“Today’s report shows that we are making progress on bringing inflation down, without giving up all of the progress we have made on economic growth and job creation. My economic plan is showing results, and the American people can see that we are facing global economic challenges from a position of strength,” the president wrote.

As I’ve mentioned before, I don’t care for the year-over-year comparisons, since you can’t really get a feel for trends. It’s better to go to the original price data (from the St Louis Fed):

This chart shows you two things: 1) Prices have risen by 0.4% each of the last 2 months (5% on an annualized basis), so inflation is on the move again after our 2-month respite; and 2) Inflation since January 2021 (Biden’s inauguration) could be modeled with a straight line with great accuracy (i.e., nothing Biden’s administration has done has slowed inflation). From the FRED data, I calculate 2% annual inflation for the two years preceding Biden’s inauguration, and 7% for the two years thereafter (assuming January 2023 hits an index value of 300).

It’s ridiculous to see Biden & Co. celebrating terrible inflation data like this. Honestly, I’m stunned at the precision and consistency with which they cranked up the inflation rate. Almost seems deliberate.

Which would explain the celebration, I suppose.

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