Assessment: The 1% of Revelation 6:6 (oil and wine), are unaffected by a drop in wages or a rise on food prices. (read more here)
According to a new report released Wednesday from the US Bureau of Labor Statistics, the Consumer Price Inflation index increased in March by 8.6 percent, measured year over year (YOY). This is the largest increase in more than forty years. To find a higher rate of CPI inflation, we have to go back to December 1981, when the year-over-year increase was 9.6 percent.
March’s surge in price inflation is also the twelfth month in row during which the increase is well above the Federal Reserve’s arbitrary two-percent inflation target. March’s CPI inflation rate was up from February’s rate of 7.9 percent. The month-over-month increase (seasonally adjusted) was 1.2 percent which was the highest since September of 2005.
“And do not harm the oil and wine” Rev. 6:6
The price inflation was driven largely by increases in energy prices (rising 32 percent, YOY) and by “food at home”—i.e., grocery prices—which were up 10 percent. Used cars also continued to show big price increases with a year-over-year jump of 35.3 percent.
Not surprisingly, we find that wages are not keeping up with price inflation. While the CPI rose by 8.6 percent, average hourly earnings only rose by 5.56 percent.
Read More @ Mises Institute HERE