Inflation Is Out of Control

Hi Houston,

The consumer price index released today showed general inflation was up 6.8% from this time last year.

My colleague E.J. Antoni, Ph.D. broke this all down in his recent commentary, An Absentee Fed Means Suffering Americans.

Now, we know that not everyone enjoys crunching the numbers quite as much as we do, so we made a quick list of some of the most important items and their inflation rate going into the Christmas season below

Groceries:

• Food: 6.1%
• Flour: 6.2%
• Uncooked beef roasts: 26.4%
• Bacon: 21.0%
• Chicken parts: 10.7%
• Eggs: 8.0%
• Pork roasts, steaks, ribs: 22.9%
• Whole milk: 6.6%
• Apples: 7.4%
• Canned vegetables: 6.5%
• Dried beans, peas, lentils: 8.6%
• Coffee: 7.5%
• Peanut butter: 6.8%
• Baby food: 6.7%

Home:

• Utility gas service (natural gas) - 25.1%
• Home heating oil - 59.3%
• Furniture and bedding: 11.8%
• Laundry appliances: 9.2%

Travel:

• Tires: 11.1%
• Energy: 33.3%
• Gasoline: 58.1%
• Used vehicles: 31.4%
• Hotels: 25.5%
• Rental vehicle: 37.2%

Other:

• Clothing: 5.0%
• Tobacco and smoking products: 8.9%
• Banking services: 9.9%

As we’ve seen in our monthly budget, we have less and less money for things because of inflation that hasn’t happened in 39 years. In fact, the rate of inflation in November alone is equivalent to a 10.0% annual rate - at that pace, prices double every 7.2 years. And no, inflation is not good for the economy like some would have you believe. This situation is unsustainable and unacceptable. 

 

The Federal Reserve must reject Modern Monetary Theory (MMT), which suggests the Fed serves as the principal financing arm of Congress' deficit spending, to right the course of our country. E.J. explains this further in his excellent commentary, Left and Right: Both Mistaken on Inflation.

 

In the meantime, we will continue to push for sound fiscal and monetary policies that will right the direction of Texas and our nation. 

 

For Liberty

 

Vance Ginn, Ph.D.

Chief Economist

Texas Public Policy Foundation