Official 1/12 CPI Print Watch

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The food at home index rose 6.5 percent over the last 12 months; this compares to a 1.5-percent annual increase over the last 10 years. All of the six major grocery store food group indexes increased over the period. By far the largest increase was that of the index for meats, poultry, fish, and eggs, which rose 12.5 percent over the year despite falling in December. The index for dairy and related products increased 1.6 percent, the smallest increase among the groups.

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The energy index declined 0.4 percent in December; this followed a 3.5-percent increase in November and was its first decrease since April 2021. The gasoline index fell 0.5 percent in December after rising 6.1 percent in both November and October. (Before seasonal adjustment, gasoline prices fell 2.2 percent in December.) The index for natural gas also declined in December, falling 1.2 percent after rising in each of the last 10 months. The electricity index, in contrast, rose in December, increasing 0.3 percent, the same increase as in November.

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"All of this inflation is being driven by policy.

[1] Energy policy (oil, gas leases nullified & pipelines cancelled) in combination with regulations targeting environmental impacts (CA ports emissions rules) is driving up energy costs. CORE inflation results from this.

[2] Fiscal policy by White House and legislature has been spending like drunken sailors, and that adds to a storm of :

[3] monetary policy, with the Fed buying back the debt created by spending, and as a consequence devaluing the dollar currency.

The cost of exporting products is less, because China and the Euro benefit from lower U.S. dollar values. However, more export of raw materials means higher prices domestically in what little remains of the supply/demand influence. The multinationals are making out like bandits, Wall Street is happy, and the middle class of America is once again a victim of economic policy.

You don’t "accidentally" stop pipelines, cancel oil leases, shut down refining capacity, change port regulations and then act surprised by saying: ‘whoopsie’ gasoline seems to be costing more? It’s a feature not a flaw. Many of the people behind the current Administration are stupid, but they ain’t *THAT* stupid. They know what they are doing, but they have to pretend not to know things in order to avoid the tar and feathers."

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