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Saturday, December 4, 2021

Under Mr. Biden Consumer Prices are Jumping

#inflation #Fed #consumer #prices #food #fuel #PCE #CPI #Biden


I am on the side that believes that the rise in inflation is not going to be temporary“– Paul Ebeling

A Key index used by the Fed to measure inflation showed that consumer prices jumped up over the last 12 months faster than they have in 30 yrs.

The PCE (personal consumption expenditures) index surged 3.9% in the 12-month frame between June 2020 and May, according to the US Department of Commerce report released Friday.

The PCE index excluding food and fuel prices increased 3.4%, the biggest leap since the 1990s.

Energy prices increased 27.4% while food prices increased 0.4% over the last 12 months, the report showed.

Another inflation measurement, the CPI (consumer price index), jumped up 5% between June 2020 and May, a Department of Labor report released earlier this month showed. The 12-month increase was the largest since August 2008.

Our senior economists have warned that increased government spending will lead to fast rising inflation because we have a massive monetary and fiscal stimulus, much bigger and longer than we had after the Y 2008 global financial crisis.

But the Fed leaders insist increased consumer prices will be “transitory,” and that they will return to pre-VirusCasedemic levels by Y 2022.

Friday, the benchmark US stock market indexes finished the week higher across the board at: DJIA +237.02 at 34433.84, NAS Comp -9.32 at 14360.39, S&P 500 +14.21 at 4280.70.

Volume: Trade on the NYSE came in very high at 2.8-B shares exchanged.

  • Russell 2000 +18.2% YTD
  • S&P 500 +14.0% YTD
  • DJIA +12.5% YTD
  • NAS Comp +11.4% YTD

Looking Ahead: Investors will not receive any notable economic data Monday. 

Have a positive weekend, Keep the Faith!

Paul Ebeling
Paul A. Ebeling, a polymath, excels, in diverse fields of knowledge Including Pattern Recognition Analysis in Equities, Commodities and Foreign Exchange, and he is the author of "The Red Roadmaster's Technical Report on the US Major Market Indices, a highly regarded, weekly financial market commentary. He is a philosopher, issuing insights on a wide range of subjects to over a million cohorts. An international audience of opinion makers, business leaders, and global organizations recognize Ebeling as an expert.   

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