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US Consumer Prices Soar At Fastest In 39 Years, Real Wages Tumble For 9th Straight Month

Tyler Durden's Photo
by Tyler Durden
Wednesday, Jan 12, 2022 - 08:36 AM

Consensus was convinced - with barely any outliers - that this morning's consumer price index would print with an astonishing 7.0% YoY (and notably 7 of the last 9 releases have come in above consensus) and they nailed it with the 7% print at its highest since June 1982 (when ET was launched in the US)...

Source: Bloomberg

That is the 19th straight monthly rise in headline CPI and Core CPI also surged to its highest since Feb 1991 (printing hotter than expected at +5.5% YoY)...

Source: Bloomberg

Under the hood, commodities, shelter, and new-and-used cars and trucks saw prices jump the most. Energy actually saw a modest 0.4% retracement (that will not be the case in January)...

Source: Bloomberg

The cost of putting a roof over your head is accelerating once again. Shelter inflation rises to 4.13% Y/Y from 3.84%, the highest since Feb 2007...

And if you think that used car CPI is going to slow anytime soon, think again...

In fact, while Services inflation rose to +3.7% - its highest since Jan 2007 - Goods inflation soared 10.7% YoY - its highest since May 1975...

Source: Bloomberg

Finally, and perhaps most importantly for Main Street, real average hourly earnings fell (down 2.4% YoY) for the 9th straight month...

Source: Bloomberg

So the next time a politician tries to tell you to be grateful that your wages are going up or you can move to a new higher paying job, just remind him that the surge in the cost of living is outpacing wage gains, thanks to The Fed's money-largesse and Congress' lockdown policies and helicopter money have crushed the quality of life for millions.

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