FOUR CHARTS EXPLAIN WHY INFLATION HAS ACCELERATED

 

              …The Treasury Secretary, Janet Yellen has her work cut out for her

 

Increase in inflation, in all areas, is expected to increase as long as the supply chain issues continue.

 

Yes, the supply chain issues have had a lot to do with increased inflation, but it’s not the only reason. 

There are four chats that are followed by the U.S. Government that explain why inflation has increased.

The titles of those charts:

• Tracking overall inflation and the Consumer Price Index
• Food, Shelter & Energy
• Cars & Truck Prices
• Meat, Vegetables, Dairy & Cereal

Here are what the averages of those charts say:

INFLATION & CONSUMER PRICE INDEX

Year to year changes show major continuous increases starting in January 2021.

Sept was the latest increase of the year of 5.4%, which was also the smallest increase of the last nine months.

FOOD, SHELTER & ENERGY

In this category there were increases every month and these increases each month were larger almost every following month for six months.

Starting in January, 2021, here are the 2021 increases:

Jan: +.3%, Feb: +.4%, Mar: +.6%, Apr: +.8%, May: +.6%, Jun: +.9%, Jul: +.5%, Aug: +.3%, Sep: +.4%

CAR & TRUCK PRICES

• It was the rental car prices that increase the most at +66%.

• Used Vehicles were +52%

• New Vehicle were the lowest increase at +10%

MEAT, VEGETABLES,DAIRY & CEREAL

This category actually includes the following and their 2021 increases:

• Meat, Poultry, Fish & Eggs: +44%
• Fruits & Vegetables: +18%
• Cereal & Baked Goods: +15%
• Diary, & Related Items: +12%

The pandemic has just made everything worse.  The Consumer Price Index took a tumble in August as the Coronavirus Delta variant continued to spread.

There is also high anxiety that the expectation is that inflation will continue to increase.  But much of all that hangs on to what the pandemic does through the Winter.

In other words, nobody knows.

Copyright G. Ater 2021