The Kobeissi Letter notes: While CPI inflation is at 3.7%, inflation is much higher in many basic necessities:
- Car Insurance Inflation: 18.9%
- Car Repair Inflation: 10.2%
- Transportation Inflation: 9.1%
- Rent Inflation: 7.4%
- Homeowner Inflation: 7.1%
- Food Away From Home Inflation: 6.0%
- Meat & Poultry Inflation: 4.8%
While headline inflation is down from its highs, many basic necessities are still seeing 5%+ inflation.
It’s also worth noting that we do NOT have deflation. We have disinflation. Deflation would mean prices were decreasing. Disinflation means that prices are increasing at a slower rate than before.
So, while the rate of inflation is DOWN, prices are still RISING.
But they also fail to mention that this is building on YEARS of inflation.
3.7% inflation is building on 8.2% in September 2022 and 5.4% in September 2021. That means that inflation since September 2021 has been nearly 20%.
Furthermore, even if the rate of inflation is falling, prices are still RISING.
The Fed’s job is far from done.
And here is the analysis from Congressman Doug LaMalfa: “Total inflation since President Biden took office is now OVER 17%. Today, a family of four is paying $15,133/year or $1,261/month more for the same goods & services than they did the day he was inaugurated. American families and small businesses are being crushed by his policies.”
Semantics aside, don’t get lost in the tyranny of numbers. Your grocery store, gas station, and home energy bills reveal the disparaging reality of our economy.
