Government power is causing inflation and middle class economic repression.
For example, US credit card debt is at an all-time high as consumers attempt to cope with inflation under Biden.
While inflation RATE is finally cooling off, the LEVEL of inflation remains high. Purchasing power for consumers is down 15% under Vacation Joe.
With structural inflation rising again.
Following yesterday’s hotter-than-expected CPI, this morning’s Producer Price Index was expected to accelerate (headline not core). However, it did not – headline PPI actually decline 0.1% MoM (+0.1% MoM exp). That is the 3rd straight month of ‘deflation’ but inched PPI YoY up to +1.0%
Source: Bloomberg
Energy and Construction cost deflation dominated the headline PPI MoM decline…
Source: Bloomberg
Energy and Food deflation dominated the slowing of the YoY PPI (though Services is re-accelerating)…
Source: Bloomberg
Excluding food and energy, the core PPI was unchanged MoM in December – the third month of unchanged in a row, which dfragged the Core PPI YoY down to +1.8% (the lowest since Dec 2020)…
Source: Bloomberg
Goods PPI deflated and Services was unchanged…
Half of the decrease in the index for final demand goods is attributable to prices for diesel fuel, which dropped 12.4%
Over 80% of the decrease in the index for unprocessed goods for intermediate demand can be attributed to a 13.2% drop in prices for crude petroleum.
Reminder, disinflation does not mean lower prices. Core producer prices are up 16.9% since President Biden came into office (and headline PPI up over 18%)…
Source: Bloomberg
Finally, the deflationary impulse remains for the headline PPI as ‘intermediate PPI’ remains below zero BUT it is starting to accelerate higher…
Source: Bloomberg
That’s a little worrying given The Fed seems adamant it wants to cut in March to save the banking system from collapse.
I am amazed that the Biden family babysitter (Jill Biden) is trashing Trump supporters calling them insurrectionist and dangerous extremists while her demented husband tries to use courts to remove his primary Presidential candidate from the ballot and violates Federal law by leaving the border wide open, letting in millions of unvetted immigrants. Rep Jerry Nadler (D-NY) admitted that he is in favor of open borders because 1) fruits and vegetables need to be picked and 2) Democrats need to import Democrat voters because Americans are fed up with Democrat policies. Like rampant inflation.
And Jill Biden said Joe works hard EVERY DAY! Except for the near 40% of his Presidency spent on vacations to Delaware, Nantucket, Virgin Islands and whereever else large corporate donors live.
