by Sundance at The Conservative Treehouse
The Bureau of Labor and Statistics (BLS) provides the latest data on consumer prices (inflation) [DATA HERE]. We explained in 2021 how inflation would grow on a month-over-month and year-over-year basis until the calendar became more friendly and the government officials could claim “diminished inflation growth.” Well, we are now entering that phase of economic parseltongue.
October consumer prices increased 0.4% over September. However, we are now comparing year-over-year (Y0Y) inflation to the period where last year’s prices had already skyrocketed, so YoY inflation seems to be moderating at 7.7%, it’s a false premise. {Go Deep}
As expected, the energy-driven consumer inflation in the food sector has arrived. The proverbial field inflation is arriving at the fork, and the October CPI now shows the third wave of food price increases we had previously discussed.
Table 2 Details: Egg prices increased +10.1% last month and now 43% higher than last year. Butter +1.9% last month, 26.7% for year. Margarine +1.3% for month, 47.1% for year. Coffee +1.3% for the month, 15.6% for the year.
Heading into baking season we find flour +0.2% for the month, +24.6% for year. Essentially, as expected, all of the holiday foodstuffs are now rising in price as the increased field and commodity prices hit the store shelves.
Some row crops are starting to moderate in price growth, while dairy products continue rising throughout the fall season. It is going to be painful on the checkbook grocery shopping this holiday season.
On the energy front,…
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