President Biden’s response to the CPI report as we speak was amusing. Let’s examine.
Meals at Dwelling vs Meals Away From Dwelling
- Since January 2023, sixteen months, the month-over-month worth of meals at residence has exceeded 0.2 % solely 3 times.
- Since January 2023, the month-over-month worth of meals away from residence has exceeded 0.2 % fourteen occasions.
- The typical month-to-month enhance for meals at residence on this timeframe is 0.1 %.
- The typical month-to-month enhance for meals away residence on this timeframe is 0.4 %.
Let’s Blame Grocery Shops
Meals away from residence has been rising 0.3 proportion factors extra per 30 days than meals at residence. So hey, let’s blame grocery shops!
Blaming grocery shops is the declare. Let’s do a truth test on the declare.
Assertion from President Joe Biden
For our truth test, please contemplate the Assertion from President Joe Biden on the April Shopper Value Index
Preventing inflation and decreasing prices is my prime financial precedence. I do know many households are struggling, and that although we’ve made progress now we have much more to do. Inflation has fallen greater than 60% from its peak, and core inflation fell to its lowest stage in three years. Costs are nonetheless too excessive—so my agenda will give households respiratory room by constructing two million new houses to decrease housing prices, taking over Large Pharma to decrease prescription drug costs, and calling on grocery chains making file income to decrease grocery costs for shoppers.
Truth Examine True
Biden cites grocery shops for “file income” and calls on them to decrease costs.
CPI Yr-Over-Yr % Change Meals
Yr-over-year meals at house is up 1.1 %. Meals away from house is up 4.1 %, 3 full proportion factors greater.
Why is that? Let’s do some extra truth checks.
Price of Working a McDonalds Jumps $250,000 in CA
On February 4, I famous the Price of Working a McDonalds Jumps $250,000 in CA Resulting from Minimal Wage Hikes
California already has a number of the highest quick meals costs within the nation. Anticipate to pay nonetheless extra, and never simply in California.
Quick-Meals Wages Set to Rise
On march 26, I famous California Eating places Reduce Jobs as Quick-Meals Wages Set to Rise
California shouldn’t be having a superb week. State Farm cancelled 72,000 insurance policies and now fast-food chains are slashing employees.
Chipotle CEO on Menu Costs “California Isn’t Making It Straightforward”
On April 28, Chipotle’s CEO commented on menu costs “California Isn’t Making It Straightforward”
Meals away from residence has risen a minimum of 0.3 % for 34 out of the final 36 months.
As of as we speak, it’s now a minimum of 0.3 % for 35 out of the final 37 months.
The month-to-month common in that 37 month interval is 0.5 %.
However hey, let’s blame grocery shops.
Meals a Brilliant Spot
Lease rose one other 0.4 % in April. Meals and drinks had been flat with meals at residence declining however meals away from residence rising.
Earlier as we speak I famous CPI Up 0.3 % With Lease Nonetheless Rising Steeply, Meals a Brilliant Spot
Meals was the intense spot in April, offered you eat at residence. Meals at residence declined 0.2 % with meals away from residence rising 0.3 %. Total, meals was unchanged.
Aside from meals at residence, there may be not that a lot to cheer about this month. Lease stays the killer.
Hoot of the Day
Biden took the one shiny spot within the CPI and blamed grocery shops for file income.
What a hoot.
Yesterday, I famous Producer Value Inflation Has Bottomed and Is Now Heading Again Up
Producer costs had been a bit greater than anticipated as we speak however destructive revisions take that away. Importantly, costs seem to have bottomed.
Joe Biden vs Joe Biden on Tariffs, a Inexperienced Commerce Battle Is Underway
Joe Biden’s altering story of tariffs can be humorous if it was not so damaging. The president introduced big new tariffs as we speak.
The Above Tweet was from June 11, 2019.
Yesterday, president Biden blasted China with big new tariffs. For dialogue, please see Joe Biden vs Joe Biden on Tariffs, a Inexperienced Commerce Battle Is Underway
Additionally see Biden Needs EVs so Badly That He Will Quadruple Tariffs on Them
Astute readers will instantly discover the title of this publish is mindless. It’s not presupposed to. However it’s precisely what President Biden is doing.
An enormous inexperienced commerce struggle has began. The end result might be greater costs for vehicles, photo voltaic panels, even lumber, and housing.
It Trump was clueless, what does that make Biden who took Trump’s insurance policies and escalated them?
My base case is a big, damaging commerce struggle irrespective of who wins the election in November. I’ve been speaking about this for months. Mainstream media is lastly beginning to choose up on the concept.
