{"id":57840,"date":"2021-05-13T08:05:59","date_gmt":"2021-05-13T13:05:59","guid":{"rendered":"https:\/\/olduvai.ca\/?p=57840"},"modified":"2021-05-13T08:05:59","modified_gmt":"2021-05-13T13:05:59","slug":"its-getting-serious-dollars-purchasing-power-plunges-most-since-2007-but-its-a-lot-worse-than-it-appears","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=57840","title":{"rendered":"It\u2019s Getting Serious: Dollar\u2019s Purchasing Power Plunges Most since 2007. But it\u2019s a Lot Worse than it Appears"},"content":{"rendered":"
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It\u2019s Getting Serious: Dollar\u2019s Purchasing Power Plunges Most since 2007. But it\u2019s a Lot Worse than it Appears<\/a><\/h3>\n<\/header>\n
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Fed officials, e<\/strong>conomists\u00a0<\/strong>\u201csurprised\u201d by surge in CPI inflation, but we\u2019ve seen it for months, including \u201cscary-crazy\u201d inflation in some corners.<\/strong><\/p>\n

The Consumer Price Index jumped 0.8% in April from March, after having jumped 0.6% in March from February \u2013 both the sharpest month-to-month jumps since 2009 \u2013 and after having jumped 0.4% in February, according to the\u00a0Bureau of Labor Statistics<\/a>\u00a0today. For the three months combined, CPI has jumped by 1.7%, or by 7.0% \u201cannualized.\u201d So that\u2019s what we\u2019re looking at: 7% CPI inflation and accelerating.<\/p>\n

Consumer price inflation is the politically correct way of saying the consumer dollar \u2013 everything denominated in dollars for consumers, such as their labor \u2013 is losing purchasing power. And the purchasing power of the \u201cconsumer dollar\u201d plunged by 1.1% in April from March, or 12% \u201cannualized,\u201d according to BLS data. From record low to record low. Over the past three months, the purchasing power of the consumer dollars has plunged by 2.1%, the biggest three-month drop since 2007. \u201cAnnualized,\u201d over those three months, the purchasing power of the dollar dropped at an annual rate of 8.4%:<\/p>\n

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Folks in the business of dealing with inflation, such as economists and Fed officials, such as Fed Vice Chairman Richard Clarida, came out this morning in droves and said they were \u201csurprised\u201d by the red-hot CPI inflation.<\/p>\n

There was nothing to be surprised about. We have been documenting\u00a0red-hot inflation boiling beneath the surface for months<\/a>, with \u201cscary-crazy inflation\u201d in used vehicles<\/a>\u00a0and in commodities,\u00a0such as lumber<\/a>, and\u00a0surging factory input costs that are getting passed on<\/a>\u00a0because the entire inflation mindset has now changed.<\/p>\n

\u2026click on the above link to read the rest of the article\u2026<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

It\u2019s Getting Serious: Dollar\u2019s Purchasing Power Plunges Most since 2007. But it\u2019s a Lot Worse than it Appears Fed officials, economists\u00a0\u201csurprised\u201d by surge in CPI inflation, but we\u2019ve seen it for months, including \u201cscary-crazy\u201d inflation in some corners. The Consumer Price Index jumped 0.8% in April from March, after having jumped 0.6% in March from […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[1055,172,303,426,13351,659,3650,4254,4255],"class_list":["post-57840","post","type-post","status-publish","format-standard","hentry","category-economics","tag-consumer-price-index","tag-cpi","tag-fed","tag-inflation","tag-price-inflation","tag-purchasing-power","tag-us-federal-reserve","tag-wolf-richter","tag-wolfstreet"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/57840","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=57840"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/57840\/revisions"}],"predecessor-version":[{"id":57841,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/57840\/revisions\/57841"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=57840"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=57840"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=57840"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}