Wolf Street: In Russia, the official rate of inflation was 6.5% in June. In the US, the official rate of inflation as measured by CPI was 5.4% in June. The CPI-W, which is used for the cost-of-living-adjustments to Social Security payments, was 6.1%. You see, there is barely any difference in inflation between Russia and the US.
Third Seal: Scarcity on Earth
5 When He opened the third seal, I heard the third living creature say, “Come and see.” So I looked, and behold, a black horse, and he who sat on it had a pair of scales[c] in his hand Rev. 6:5
The Bank of Russia sees the “persistent factors” to inflation, and it has therefore been cracking down on inflation. The Fed has decided to be in official denial about the persistent factors, is brushing them off as “temporary,” and is letting inflation rip.
Today’s rate hike would have been shock and awe if Bank of Russia Governor Elvira Nabiullina hadn’t warned on June 28 of a possible shock-and-awe hike of up to 1 percentage point. Today the Bank of Russia followed through: it hiked its policy rate by 1 percentage point to 6.5% (from 5.5% previously).
The rate-hike trajectory kicked off on March 19 with a surprise 25-basis-point rate hike, from 4.25% to 4.5%, followed on April 23 by a 50-basis-points hike to 5.0%, followed on June 11, by another 50-basis points to 5.5%. Followed by today’s 100-basis-point hike to 6.5%. Read More