195 sats \ 6 replies \ @tomlaies 13 Jul 2022 \ on: Consumer Price Index Hits 9.1% bitcoin
This is insane.
Summer last year had a few 0% MoM numbers. This means the inflation number of the next few months could be insane YoY.
I wonder what the reaction would/will be when people read double digit numbers
One counter argument seems to be that oil prices are down in the last few weeks, but haven’t been fully captured by decreasing gas costs. Perhaps that will be seen in next month’s numbers.
Other than that, I don’t know how much good news there is for consumers. I keep thinking the next inflation number will be lower, and I keep getting it wrong.
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That's a good point. Energy is quite volatile and has a ripple effect through the economy
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I'd call it domino effect.
Some parts of it are also pretty irreversible.
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We can calculate that:
The Consumer Price Index for All Urban Consumers (CPI-U) increased 1.3 percent in June
1.7% per month, compounded over 12 months, would be 17%. So if the next year continues to have inflation at the rate of the past few months, we'll be north of 15% by next Spring.