The usual suspects have been pointing to signs of inflation as a way of claiming that the Biden relief payments have been overheating the economy. This is complete malarkey. Happily, even the Federal Reserve is shooting down this nonsense.
The source of the alarm was the May report of the Labor Department that the Consumer Price Index had increased by 4.2 percent if you compare prices in April 2021 with April 2020. The “core” number, which excludes volatile food and energy prices, was up 3 percent.
This report followed an April CPI report that showed a year-to-year increase of 2.6 percent. The two taken together suggested that inflation might be accelerating.
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