The article was only a couple sentences.
For a little bit more context (and breakdown of categories) check out the bls.gov report:
https://www.bls.gov/opub/ted/2021/consumer-price-index-rose-...
For a little bit more context (and breakdown of categories) check out the bls.gov report:
https://www.bls.gov/opub/ted/2021/consumer-price-index-rose-...
Gasoline (all types) 42.7% - Huge dip when the pandemic happened now its back to pre covid prices.
Natural gas (piped) 21.1% - Same issue.
Used cars and trucks 31.9% - New cars are being made because of a ship shortage.
Meats, poultry, fish, and eggs 8.0% - a labor problem because its hard to get that many people to work in spaces like that and not get sick.
https://en.wikipedia.org/wiki/Early_2014_North_American_cold...
There's a lot of idle capacity ready to go right now, but the energy companies are enjoying the higher prices. https://www.texasmonthly.com/news-politics/natural-gas-price...
Production is higher than ever before. Anyone can write any article that they wish. The only public data available right now from the EIA is a little lagged, but keep an eye on the September number when it is available.
The energy companies used to also ramp up production in areas like the Permian Basin as soon as oil/gas reached certain thresholds. They are generally being much more disciplined right now because of uncertainty about the pandemic. From that perspective, the prices are more indicative of the "post-pandemic" economic recovery than inflation. If there was less uncertainty about the pandemic recovery, they would be more likely to invest in additional drilling and the price would come down from current levels. They just don't want to be caught ramping up production while seeing a simultaneous pandemic-driven downturn in demand.
Well I guess no, as almost every comment on this thread seems to have no idea.
Just wanted to add, if all else is held equal amount those factors, growth in gdp, without and subsequent changes in the money supply or velocity, would lead to deflation.
Price Level = Money Supply * Velocity / Real GDP
If you improve real output without an increase in money supply or velocity, things'll get cheaper.
consumer price level should be proportional to Money supply × velocity ÷ (real GDP + value of net consumer imports)
Also official inflation rate isn't based on a fixed basket of goods, but changes. For instance, if chicken becomes more expensive, they weigh beef more. But pretty much anyone that's been to a restaurant in the last 6 months can tell you that prices are up a lot more than 5%. I guess just eat out less, right?
Yes.
Adjusting behavior based on increasing prices (or, alternately, increasing wages) is normal.
In the short-term these adjustments feel wrong. But at what point does a no-adjustment inflation measure stop measuring inflation?
Buggy whips and hats are not in current inflation measures. Long ago, computers and airline tickets weren't in inflation measures. When did "eating at restaurants" become enough of a thing that it became part of inflation measurement? Restaurants have existed a really long time, no? Ancient Romans had "fast food".
Zoom out and think about it. Entire product categories come and go from our daily lives. Is there any possible method for understanding "how much stuff costs relative to the past" that doesn't look janky in the short run? This is a hard problem.
FYI - there are 100 or more different CPI series that are published. The news reports on a single one - the one that applies to the largest number of people in the US. You may find that a different one is more applicable to your particular circumstance.
It has been updated. This is quite common with breaking news, to put up a placeholder with basic information while the article is being written.