Alternative Visions - Inflation Revisited: Unpacking the CPI Report

Today’s show focuses on the latest inflation (CPI) report released, showing inflation still rising by 6.8% (year on year). What are the causes? The show reviews how much may be due to supply issues (global supply chains & domestic supply issues), US consumer Demand, and inflationary expectations and just business price gouging. Looking at the main items of last month’s inflation—food, gasoline, shelter, autos, rents, clothing, etc.—Dr. Rasmus concludes inflation is driven in part by global and domestic supply causes, very little due to consumer demand, and very much due to rising inflationary expectations and widespread business price gouging. The latter is especially evident in rising cost of gasoline and rents and certain domestic food production (meat, milk, cereals, etc.). Global supply chains are responsible for autos, clothing, electronic goods, etc. But the main culprits are food, gas, rents which have little to do with supply or demand. Rasmus explains why the 6.8% is probably underestimated and inflation more than 10% and why it won’t be temporary. The show concludes with an analysis of what’s going on in the Ukraine, with US confrontation with Russia.