by Sundance at The Conservative Treehouse
The Bureau of Labor and Statistics released the September Consumer Price Index (CPI) today [DATA HERE]. The financial and business media call the continued rise of consumer inflation “unexpected,” however, the results are not a surprise to those who are not pretending.
This CNBC headline highlights the economic pretense still entrenched: “Inflation increased 0.4% in September, more than expected despite rate hikes.” Those who are not pretending fully understand the economic dynamic, but you will not find reality expressed by the mainstream media.
FED rate hikes can only impact the demand side of the inflation issue. U.S (and global) inflation is NOT the result of excess demand. It has not been driven by demand for over a year. The root cause of inflation is on the supply side. That root is grounded in the energy policy making everything entering the marketplace more expensive.
The historic rise in energy prices; the result of Joe Biden’s specific energy policy to limit oil, gas and coal as energy resources; are what have driven inflation throughout the economy. The monetary policy (Fed policy) continues to pretend this dynamic does not exist. The FED is trying to support the political policy, but the bloom is off the ruse.
Overall inflation increased 0.4% in September, leading to a result of 8.2% year over year. Food and energy prices continue driving inflation, additionally core inflation (everything except food and energy) continues to be driven by the originating issue of extreme energy costs.
Everything costs more because energy costs more. That is the reality of this inflation issue…
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