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Defenders of big-government pandemic interventions have insisted that any price inflation these schemes have caused is just temporary. But even more data just came in showing price inflation hitting new highs—further spotlighting the destructive consequences of these reckless policies.
The federal government just released the latest Consumer Price Index (CPI) for June 2021, an imperfect but useful metric that tracks general price inflation in a bundle of typical consumer goods. Basically, it attempts to illustrate how much prices are rising for the goods average Americans buy regularly. The June edition shows prices once again sharply on the rise, with a 0.9 percent increase from May to June. From June 2020 to June 2021, the data show that consumer prices rose a whopping 5.4 percent.
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Some specific goods saw particularly drastic price hikes year-over-year. Chiefly, used cars and trucks rose 45.2 percent in price, while energy prices spiked 24.5 percent.
This all represents the biggest year-over-year price increase measured since 2008. In other words, price inflation just hit a 13-year high.
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While price inflation has many causes, we can trace much of the current surge back to the policy of the Federal Reserve, the central bank controlling the supply of US dollars. The Fed essentially created trillions of new dollars to pump into the economy in the name of “stimulus.”
“The quantity of money has increased more than 32.9% since January 2020,” FEE economist Peter Jacobsen explained in May. “That means nearly one-quarter of the money in circulation has been created since then. If more dollars chase the exact same goods, prices will rise.”
Originally Posted by dawg80
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