Consumer prices surge again, core CPI jumps most since 1991
|The CPI and the core CPI (excluding food and energy) both jumped 0.6% in July from June. The BLS CPI Report shows another sharp month-over-month rise, but year-over-year is another matter. Data collection by personal visit for the Consumer Price Index (CPI) program has been suspended since March 16, 2020. When possible, data normally collected by personal visit were collected either online or by phone. Additionally, data collection in July was affected by the temporary closing or limited operations of certain types of establishments. These factors resulted in an increase in the number of prices considered temporarily unavailable and imputed. While the CPI program attempted to collect as much data as possible, many indexes are based on smaller amounts of collected prices than usual, and a small number of indexes that are normally published were not published this month. These indexes supposedly measure inflation. They do nothing of the kind. The indexes do not include home prices, only rent. The purported medical inflation is a joke. Anyone who buys their own medical insurance will tell you their costs are up more than the reported 5.9%. Anyone in college has not been pleased with the rising cost of tuition and rent in college towns. And anyone with an ounce of common sense knows the current stock market bubble is a measure of inflation. Stock prices are not "consumer" inflation, but realistically home prices are. Regardless, the Fed's focus on consumer inflation ignoring housing, while averaging medical costs with those on company plans and Medicare is just plain wrong. Central banks’ seriously misguided attempts to defeat routine consumer price deflation is what fuels the destructive asset bubbles that eventually collapse I am not blaming the Fed for the coronavirus and these shocks. However, I am blaming the Fed for its erroneous inflationary tactics that blew three of the biggest economic bubble in succession: 2000, 2007, 2020. Core CPI up most since january 1991
CPI month-over month
CPI year over-year
Word about measurement from the BLS
Poor measure of inflation
Focus on consumer inflation is horribly wrong
Fed can blame itself
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