If it seems like your energy bills have fell victim to price creep, you’re right. Data from the U.S. Bureau of Labor Statistics and the Energy Information Administration suggest that U.S. consumers have seen the largest increase in natural gas and electricity bills in decades.
While economists expected another modest rise in inflation on a MoM basis (if far below the 1.3% surge in June), the headline US Consumer Price Inflation was expected to slow from +9.1% YoY to +8.7% YoY in July, but it actually slowed significantly more than expected to +8.5% Yoy (flat MoM), ending a 16-month streak of MoM gains.
With the Biden administration already setting the narrative yesterday that today’s inflation print could be ‘high’, and expectations for a headline print of +7.9% YoY (from +7.5% YoY in January), the bar was high for any surprises and the headline print came in right in the dot at +7.9% YoY – the highest since Jan 1982.
Last time, we explored the growling evidence that in spite of a tame Consumer Price Index (CPI), real-world inflation is becoming “a thing.” This is notable because it’s happening at a time when “velocity” … how fast money (or more accurately, “currency”) circulates … is slow due to lockdowns their fall out. In Part 2, …