Stagflation Strikes As US Consumer Prices Surge At Fastest Pace In 5 Years

Tyler Durden's picture

After the hotter-than-expected PPI print, Consumer Prices confirmed that inflation is running hot with the fastest rise since Feb 2012.

Notably core CPI (at 2.2%) has been above The Fed's mandated 2% 'price stability' level for 15 months in a row.

 

Of course, one of the big drivers of this price surge is in shelter and rent inflation...

 

Combined with the weakest GDP growth outlook in over a year, it appears stagflation is looming...

And The Fed is hiking into its face.

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Erek's picture

Isn't this wonderful? Shit is costing more and we are earning less (adjusted for inflation), and the crap offered to us to buy is worthless/useless junk.

MFL5591's picture

Perfectly enginerred by the Fedearl Reserve to allow thier Zionist masters to steal the remaining wealth of the USA.

SerfsUp's picture

More like perfectly engineered to give Old Yeller the excuse she needs to spike interest rates, crash the economy and blame the resulting chaos on Trump.

froze25's picture

Not so sure about that, maybe after cooking the numbers for the last 8 years they need to catch them up to reality.

fbazzrea's picture

more like life-support since 2008. reality is that America will never recover without addressing the ENORMOUS DEBT and $500B annual deficit. raising interest rates will only increase the deficit. of course, savers will enjoy a slight increase in interest on their savings, but still the entire 0.25% will not go to their bottom line. bankers will eat up most of that and allow their customers a slight dribble.

the Fed is a scam. dump the FRN and implement sound money policy. only way out. everything else is just smoke 'n mirrors.

flicker life's picture
flicker life (not verified) fbazzrea Mar 15, 2017 11:00 AM

I'm making over $7k a month working part time. I kept hearing other people tell me how much money they can make online so I decided to look into it. Well, it was all true and has totally changed my life. This is what I do... http://bit.ly/2jdTzrM

Walken's picture

You're also forgetting a 600 billion plus annual trade deficit. 

Long memory man's picture

If you are a bankster the plan has always been, suck people into debt, then raise the rates.

In the interim you have bundled the debt into a nice derivative and passed the parcel to an inbecile pension plan manager.

 

Neat trick, again and again.

Latitude25's picture

So the cost of everything goes up except for gold and silver.  Apparently they are not money or commodities.  /s

actionjacksonbrownie's picture

Of course they are money and commodities. That's why they are controlled.

Trade of the day; Short Gold at 1:58pm, cover shorts at 2:01pm. For the past 5 years, that has been the most reliable money-maker there is on .fed day.

actionjacksonbrownie's picture

Wow you didn't want to loiter around on that trade today. And it was only good for $1!

Seasmoke's picture

Stagflation is the very worst of all the flations.

Fuck You Janet Yellen. You should be hanged for Treason.

JLO's picture

LOL...how many credit cards you have?

GUS100CORRINA's picture

Let's see .. Increasing prices with no growth globally.

One word: STAGFLATION!

Yes the article title is correct.

The CBs have LOST CONTROL (Bunch of lying despots with reprobate minds).

President TRUMP is going to be proved very right in everything he said about "OBAMA's" economy during the POTUS campaign.

As a side note, their are many who believe we are looking at double digit inflation if the TRUTH be known. I have done my own calculation to correct for the economist shenanigans since the 1980s. My current number for inflation is about 25% when I adjust for package size versus price! Yes, you read the number correctly. Below is information on the CPI calculation from Shadowstats.com observations. The same logic would apply to PPI as well in many cases.

We have a BUNCH OF LYING DESPOTS as ECONOMISTS. Truly sad because this will not end well! We need A President like Andrew Jackson to deal with this 'Den of Vipers and Theives'. I certainly hope President TRUMP is that person. 

==========

Consumer Price Index Has Been Reconfigured Since Early-1980s

So As to Understate Inflation versus Common Experience

-----------------

CPI no longer measures the cost of maintaining a constant standard of living.

CPI no longer measures full inflation for out-of-pocket expenditures.

With the misused cover of academic theory, politicians forced significant underreporting of official inflation, so as to cut annual cost-of-living adjustments to Social Security, etc.

 Politicians look to expand further the concept of artificially-suppressed cost-of-living adjustments in current budget-deficit negotiations, through the use of the Chained-CPI.

Use of the CPI to adjust retirement benefits, private income or to set investment goals impairs the ability of retirees, income earners and investors to stay ahead of inflation.

Understated inflation used in estimating inflation-adjusted growth has created the illusion of recovery in reported GDP.

 

redtie's picture

The best investment these days seem to be chickens, fruit trees, and toilet paper... 

J J Pettigrew's picture

Two chickens, 5 tillable acres, two wooded acres, a well, 5000 rounds

serotonindumptruck's picture

I concur on your investment advice. We have fruit bearing trees including peach, nectarine, plum, pear, and cherry. We're currently focusing on berry vines and plants along fencelines and general perimeter.

A few years ago, I thought I'd stockpile vegetable seeds, only to discover that these are items that must be continuously and sustainably produced in your own garden/environment. Apparently, many seed varieties steadily lose germination efficacy with each passing year, even if properly stored in cool, dry locations. You might expect 80% germination the first year for fresh seeds, and then a steady decline.

Twaddlefree's picture

But that first year at 80% gives you the plants you need to reap more seeds. It is a necessity to learn how to do this.

J J Pettigrew's picture

The Fed OVERSTAYED their stimulus.

When the velocity of money turns around, the inflation will soar, and the problem geometrically accelerate.

Services, including healthcare, car repair, heating and cooling repair, real estate taxes, etc. all to ramp up...

Let us NOT FORGET that inflation numbers compound and accumulate.  Inflation up 14% cummulatively since 2009....while the Fed was afraid of 'defaltion' and promoted MORE inflation, in direct conflict to their mandate of stable prices.

peterk's picture

Inflation figures, GDP,  and all that will go the way that trade deficit figures did.. they will be ignored

The Fed is just concerned about asset prices... all else is a red herring for the mass media and politicians to chase.

 

The Fed  can raise now, becuase the DOW  has surged upwards.

Thats the only barometer to look at.

 

tbone10's picture

As the breakdown looms, lock your fucking children away!

WTFRLY's picture

Arm the children AND the chickens.

VarenneRiver's picture

Unessential service sector balancing on a wire...not much surplus income to spend these days.

Sky flyer's picture

I don't even have to read this article or any others to understand anymore. Bullish.

Wile-E-Coyote's picture

What happens when all the bonds get dumped, there will be cash looking for a home, talk about throwing petrol on the inflationary fire.

J J Pettigrew's picture

People only got a whiff of the principle loss when the 10 yr went to 3% a few years ag. The corpus loss, of the 10 year when rates just click up 1% is severe.

We have an entire community who have locked in rates at historical lows.  Janet and Ben were notihing but cattle drivers....

peterk's picture

The Federal Reserve (FED) is a PRIVATELY OWNED, organization. Unbelievable? Check the ENCYCLOPAEDIA BRITANNICA.

b. Below is the list of the owners of the 12 Central Banks:
- Rothschild Bank of London
- Rothschild Bank of Berlin
- Lazard Brothers of Paris
- Israel Moses Seif Banks of Italy
- Warburg Bank of Amsterdam
- Warburg Bank of Hamburg
- Lehman Brothers of New York
- Kuhn Loeb Bank of New York
- Goldman, Sachs of New York
- Chase Manhattan Bank of New York

In all, there are about 300 VERY POWERFUL, partly foreign individuals that owns the FED.

2. Although the FED is required to give back most of its PROFITS back to the Treasury Dept., there is NO ORGANIZATION that has the power to AUDIT the FED (not even the Congress or the IRS). This creates a HUGE opportunity for creative accounting to hide the profit that ROBS the US Tax Payers Hundreds of Billions of Dollars annually.

3. Every year, a few Congressmen introduce a legislation to AUDIT the FED; and every year, the legislation is defeated. The FED has the most powerful, invisible lobbying power there is.

4. The owners of the FED own the controlling interests in ALL major media in the US. Rockefeller, through Chase Manhattan bank, controls CBS and ABC and 28 other broadcasting firms. Each of the other owners of the FED also have controlling interest in the US media. This explain why the media have been silent about the FED scam. The FED fraud is the biggest and longest cover-up in the US today.

5. According to Article 1, Section 8 of the Constitution, the US Congress has the power to print money (The Congress shall have the power to coin money, regulate the value thereof, and of foreign coin, ... According to the Supreme Court, the Congress can not transfer its power to other organization like the FED.

After several attempts to push the Federal Reserve Banking Act through Congress, a group of bankers funded and staffed Woodrow Wilson's campaign for President. In 1913, Nelson Aldrich, maternal grandfather to the Rockefellers, pushed the Federal Reserve Act through Congress just before Christmas, when most Congressmen were on vacation. Naturally, President Wilson passed the Act when he was elected as a pay back to the bankers.

Long memory man's picture

Do not forget the FED give 6% interest to shareholders, minimum each year, by law.

NoWayJose's picture

Don't worry - the Fed will fix it - they already claim food and energy are 'volatile' so they exclude those from their CPI. So if the cost of housing increases too fast, it too will be deemed 'volatile'!

hotrod's picture
  • CPI
  • FOOD AND BEVERAGES (breakfast cereal, milk, coffee, chicken, wine, full service meals, snacks)
  • HOUSING (rent of primary residence, owners' equivalent rent, fuel oil, bedroom furniture)
  • APPAREL (men's shirts and sweaters, women's dresses, jewelry)
  • TRANSPORTATION (new vehicles, airline fares, gasoline, motor vehicle insurance)
  • MEDICAL CARE (prescription drugs and medical supplies, physicians' services, eyeglasses and eye care, hospital services)
  • RECREATION (televisions, toys, pets and pet products, sports equipment, admissions);
  • EDUCATION AND COMMUNICATION (college tuition, postage, telephone services, computer software and accessories);
  • OTHER GOODS AND SERVICES (tobacco and smoking products, haircuts and other personal services, funeral expenses).

 

Also included within these major groups are various government-charged user fees, such as water and sewerage charges, auto registration fees, and vehicle tolls. In addition, the CPI includes taxes (such as sales and excise taxes) that are directly associated with the prices of specific goods and services.

 

THE ABOVE ITEMS ARE SUPPOSEDLY IN THE CPI.  I DONT SEE HOW IT REMAINS SO LOW.  MEDICAL CARE, TUITION, NEW VEHICLE COST, HOUSING RENTS, ARE WAY WAY UP.

silverer's picture

"Don't worry - the Fed will fix it..."

Be we ARE worried. They "fixed it" for the last 10 years! lol

InTheRabbitHole's picture

"stagflation" strikes ?? no shit, we haven't had over 3% GDP growth in 10 YEARS

allamerican's picture

up open simply needs be sold..

all i got say forrest..

John Law Lives's picture

... but The Bernank said inflation could be stopped in 15 minutes...

Fed_FUBAR

silverer's picture

The real deal. See what inflation really is in your area:

http://chapwoodindex.org/

The government excludes a lot of things when they do their calculations. The big lie of omission.

saveUSsavers's picture

ty-- I can say in San Diego 12.5% ave inflation last 5 yrs is ON THE MONEY!

Snot Boogie's picture

I wish you spammers would fuck off.  It would be nice, though, if you at least could spam intelligently.  Two guys just happen to spam the same link and pretend to be different people responding to each other -- ridiculous.

saveUSsavers's picture

think what a BAT will do to the lower incomes, who spend 50-70% on basics

juggalo1's picture

I wouldn't characterize 2.7% inflation as "running hot".  In addition, you say "The Fed is hiking into its face".  Isn't that exactly what you would want or expect serious monetary authorities to do when inflation is around its target and moving up?

saveUSsavers's picture

it's MUCH hotter, shelter is at least +6% yoy, food has jumped, even Amazon items we noticed, looks like suppliers raising ahead of any BAT, 2.7 is BIG LIE

http://chapwoodindex.org/ 14.5% here is exact in San Diego

Yen Cross's picture

  Keep raising those rates Moe Howard.  Never go Swiss< lol

Sledge-hammer's picture
Sledge-hammer (not verified) Mar 15, 2017 4:34 PM

Interesting that the jew press did not use the term "stagflation" during Owmyballs' terms in office.