Double-Digit Inflation Confirmed

Even the over-weighting of computers and digital televisions (no, I’m not kidding!) can blunt the inflation numbers this time. This just in from the BLS:

On a seasonally adjusted basis the Consumer Price Index for
All Urban Consumers (CPI-U) rose 1.1 percent in June after
increasing 0.6 percent in May.  The index for all items less
food and energy increased 0.3 percent, following an increase
of 0.2 percent in May.

Do the math, ladies and germs, that translates to double-digit inflation. But the news is even worse than that.

Real average weekly earnings fell by 0.9 percent in June 2008. The
change resulted from a 0.3 percent increase in average hourly earnings
partially offset by a 1.2 percent increase in the Consumer Price Index
for Urban Wage Earners and Clerical Workers (CPI-W). Average weekly
hours were unchanged. Real earnings were down 2.4 percent from a year

What this means is simple. Even a government led by a douche who just yesterday stood behind a podium at a press conference and lied to the people he works for can’t hide the numbers any longer. We’re paying a hell of a lot more for stuff, and we’re no longer even keeping up with inflation.

But the above is merely the e-mail news release from the BLS. Want to see something really funny? Read the entire news release. This is the main paragraph:

On a seasonally adjusted basis, the CPI-U advanced 1.1 percent in June, following a 0.6 percent increase in May. The index for energy rose sharply for the second straight month, increasing 6.6 percent in June following a 4.4 percent increase in May. The increase in the energy index ccounted for around two-thirds of the overall increase in the all items index in June. The index for petroleum-based energy advanced 10.0 percent and the index for energy services rose 1.5 percent. The food index rose 0.8 percent in June after rising 0.3 percent in May. The index for food at home went up 1.0 percent in June, with indexes for four of the six major grocery store food groups sharply accelerating. The index for all items less food and energy increased 0.3 percent in June, following a 0.1 percent rise in April and a 0.2 percent increase in May. Larger increases in the indexes for shelter and for tobacco and smoking products and an upturn in the apparel index contributed to the
larger increase.

Did you note that last part? Watch the pro-Bush media (Fixed Noise) spin the numbers all day, to make you think inflation isn’t as bad as it is. They HAVE to lie, because they’re desperate. Tobacco seems to be an odd thing to include in a Consumer Price Index, wouldn’t you say?

I’ll have more on this in coming days and weeks, but in the interim, for your homework, I want you to Google "hedonic analysis."


Double-Digit Inflation Confirmed — 1 Comment