It’s a good thing that the BLS ignores things like the recent rise in real estate and gas prices when it generates its official inflation numbers…
Why?
Because if the BLS didn’t do this we might actually see that inflation is exploding higher.
This is not conspiracy theory, it is fact. And if you don’t believe me, consider what the homebuilder industry is saying about house prices.
While demand and homebuilding remain solid, the industry is not without its challenges. Construction companies cite a shortage of workers, rising costs for lumber and other building materials and a scarcity of available lots on which to start new projects. Affordability is also becoming a bigger issue as gains in property values outpace income growth and interest rates rise.
Source: Bloomberg.
What do you call it when an asset price that people need rises in value faster than their incomes?
It’s called inflation.
What about gasoline?
Sales at gasoline stations were up almost 12% in April compared to one year ago, reflecting a runup in oil prices that began last summer and accelerated in 2018. The cost of a barrel of oil has climbed above $70 from $45, and it could head higher still with the summer driving season straight ahead.
Put another way, Americans shelled out an extra $4.4 billion for gasoline last month than they did in April 2017, according the government’s latest report on retail sales.
Source: Marketwatch
What do you call it when oil prices rise rapidly resulting in higher energy costs for Americans?
It’s also called inflation.
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That Makes SEVEN Straight...