The broad inflation problem. Can it be controlled?

Bloomberg/John Authers/1-14-2022

“Many reasons were offered in mid-year, sincerely and honestly, to show that higher inflation numbers were merely a facet of transitory effects of the pandemic. None of them holds water any longer.”

USAGOLD note: Authers breaks down the inflation numbers in this piece and comes away with the conclusion that inflation is here to stay. Now the Bureau of Labor Statistics not only proposes to exclude food and energy from its baseline number it would like to also exclude used cars. Authers calls the new index “inflation excluding everything you would like to exclude.”

Chart courtesy of TradingEconomics.com