Inflation speeds up in April as consumer prices leap 4.2%, fastest since 2008 | Hacker News Reader

Inflation speeds up in April as consumer prices leap 4.2%, fastest since 2008

cnbc.com

54 pointskoolba11 comments

It seems to be 0.9% MoM. While still high, a lot of the YoY numbers dominating these headline are driven by statistical base effect from covid anomalies 12 months ago.

Given we're still in recovery mode from Covid, I'd expect more anomalies to show up in econ data over the coming months.

I don't think there's anything persistently big on the horizont w.r.t to inflation.

Money supply has been going way up, and we've seen massive asset inflation. Consumer prices have to catch up to that at some point, right? Particularly since we are hearing more from the manufacturing sector about COGS going up.

It's difficult to really judge how much of an impact money supply increases are having on the cost of goods since there are also massive supply issues.

For example, prices for housing materials have been skyrocketing for years; well before covid. Back then it was blamed on other unpopular political situations (trade war, mostly). Now it's blamed on covid relief.

Once production stabilizes, we'll have a better way to measure inflation due to money supply increases against inflation due to supply shortages.

> Once production stabilizes, we'll have a better way to measure inflation due to money supply increases against inflation due to supply shortages.

Wont the rents for workers go up due to housing price inflation?

Low interest rates should keep some of that in check but it will be offset by the rise in property taxes being calculated off the "new normal" home prices we're seeing. Basically, whatever property tax increases are capped at, expect to see an increase of about that much if not more YoY after people start paying taxes on their new homes.

> Money supply has been going way up, and we've seen massive asset inflation.

Money supply goes up, velocity goes waaay down. Net inflation impact.. nearly zero. This inflation appears to be a combination of the US economy seeking a post-COVID equilibrium and the impact of stimulus spending.

If the democrats accomplish pretty much any of their progressive reforms, that will likely have a positive effect on velocity.

US dollars held abroad by Central banks has also drastically dropped in favor of other currencies. Lowest rate in 25 years at 59%. [1]

[1] https://www.srf.ch/news/wirtschaft/globale-waehrungsreserven...

Here it comesssss

All the wage gains are about to be reversed with inflation (this has already been true in regards to housing over the last year).

Look at the interest rate!!

Houses here are up $100k in the last year, I’m curious if the low interest counters that for first time home buyers?

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