Sticker Shock

The rising prices of services and goods in the 2020s seem to mirror the 1970s.

‘Look to the ant, you sluggard! Consider its ways and be wise, which, having no guide, overseer or ruler, provides meat in the summer and gathers food in the harvest.’ - Proverbs 6:6-8

Last Wednesday, February 12, at 7:30 am, Central Time, the Bureau of Labor Statistics reported that the consumer price index (CPI) rose 0.5% in January, representing an annual inflation rate of 3.0%.

Economists had expected a rise of 0.3%, or 2.9% annualized rate of inflation.

Inflation is running hot.

If you don’t know what that means, it’s very simple:

The dollar bill you hold in your purse will buy 3% less a year from now.

But inflation could get worse before it eventually gets better.

I watch economic data come out every morning of the week through Trading Economics, the best and most detailed website for real time data like inflation.

I (and others) were expecting inflation to run hot.

In a Truth Social post on the same day the inflation report came out, President Trump responded by writing: "BIDEN INFLATION UP!"

Lowering prices was one of Trump's campaign promises, but with Wednesday's less-than-rosy economic report, Trump is punting blame to his predecessor.

Truth be known, when President Trump promised to “bring down inflation” during his campaign, I told my wife:

"I like Trump, but I don’t think he has a clue how difficult it will be to bring down inflation.”

The 2020s Beginning to Look Like the 1970s

Some of us are old enough to remember the 1970s, a time of stagflation for Americans.

I will show you some statistics that might convince you that America is to repeat the inflationary times of the 1970s.