Posted on 05/12/2020 8:11:58 AM PDT by blam
Deflation picked up in the U.S. in April, pushing consumer prices down 0.8 percent compared with a month earlier, even while food prices soared.
The price of gasoline dropped 20.6 percent for the month, the Department of Labor said Tuesday. The prices for clothing, airline travel, cars, recreation, and hotels all plunged while the price of groceries saw its biggest monthly increase since 1974.
Compared with a year ago, prices were up 0.3 percent, Core inflation, a measure which subtracts changes in the prices of the volatile food and energy categories, fell 0.4 percent, the steepest decline ever in records of the Consumer Price Index going back to 1957.
The Federal Reserve says it aims for 2 percent annual inflation, based on a different measure of prices called personal consumption price index. It tends to run a half a percentage point or so below the more familiar Consumer Price Index. In March, the Fed cut its target to a range of 0 to 0.25 percent and has announced a number of new programs aimed at bolstering the economy and supporting prices. As well, Congress has authorized trillions of new spending programs aimed at supporting employment and businesses hit by the virus and lockdowns.
Prices for medical care, rent, and household furnishings all increased in April.
The Department of Labor’s gauge of food prices increased 1.5 percent in April following a 0.3-percent increase in March. The food at home index increased 2.6 percent. The increase was broad-based, with all six major grocery store food groups increasing at least 1.5 percent over the month, the government said.
Food prices reflect the periodic shortages many Americans have experienced at the grocery store. The index for meats, poultry, fish, and eggs increased the most, rising 4.3 percent.
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(Excerpt) Read more at breitbart.com ...
FYI, the Walton family are the richest people in five different US states.
How much does prime aged beef cost in NYC or DC? That’s all that matters.
Food inflation is always skewed because it is easy to substitute the benchmarks or just avoid them altogether.
“Core inflation” consists of everything that one doesn’t need to buy.
Ironic aint it?
On and off, here in Western Penn., I have seen shortages of meat, eggs, butter, milk, pasta, soup, canned goods and of course paper products. Limits on purchases of many items, paper, soap, cleaners, and now meat. We had ample warning from abroad this would happen here, but nothing was done (not sure what could be done, though).
With the economy shot to blazes the inflation caused by the “economic stimulus” checks will not be measurable.
I feel the same when I buy pecans from the store.
Well you must be from by God Georgia
Nah.
- Roll Tide -
Now, was I surprised to learn that:
Yes, but somebody has to process it. Maybe some farmer would like to sell you a live steer. Maybe you can even handle that, but, 99% of people can’t.
Amazing how if you exclude Energy, Food and Housing, there is NO Inflation.
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