Americans are truly underwater now in terms of inflation versus wages.
While some sectors have seen a mild increase in wages, that slight increase was more than eaten up by the rising inflation through November.
After seeing December’s report, you better get ready to dig even deeper into your pockets for goods and services.
Going Backward
The report for December is beyond disturbing.
With the emergency allocation of oil likely depleted, we are starting to see gas prices surge again.
In December, the consumer price index (CPI) rose seven percent compared to last year, up 0.4 percent from last month.
That is the biggest surge we have seen in this country in four decades.
In June 1982, we saw a 7.1 percent increase, and now Joe Biden has just about matched it.
The news does not get any better for consumers because there is no way to get around these price increases.
I say that because the most volatile markets impacted by the increase are things we have to purchase.
The food and energy sectors soared by 5.5 0percent in December from last year.
That is why you got hammered on food bills over the holidays, and it is why you are seeing your heating bills cost far more this year than they did last.
Of course, gasoline is also included in that, and it does not appear to be getting better anytime soon.
Overall, energy prices are up 29.3 percent from last year, with gasoline up 49.6 percent and food prices up 6.3 percent.
Seema Shah, the chief strategist at Principal Global Investors, stated, “Inflation at 7% is no joke.
“It’s the highest annual CPI number since 1982 and driven not by energy prices, but by just about everything else.”
Economically, we are pretty much at the edge of the cliff right now.
If this is not corrected, and I mean within the next month or two, we are looking at some dark days ahead financially.
For Biden personally, this news could not be worse.
I fully expect him to take yet another hit in polling once these numbers are fully digested by voters.
Are you starting to get worried about inflation or do you think it will pass?
Tell us what you think in the comments section below.
Source: Fox Business
