May 18 2021 at 2:31 pm
The last CPI print in the US was 4.2%, released by the Bureau of Labor Statistics. This is fact, not rumour. It would have been closer to 8% if they had used house prices rather than owner equivalent rent.
So what is more likely to have caused this real surge in inflation?
Hedge funds starting rumours (and given most hedge funds are net long the markets, this wouldn’t suit them anyway) or the Biden government printing and spending monumental amounts of money? Something like 15% of GDP.
I mean, printing money and promising to print even more, affecting inflation and inflation expectations going forward. Who’d have thought it.
Richard Murphy says:
May 18 2021 at 2:51 pm
Reappraising the contribution of the public sector to GDP during the recession?
Reappraising public sector contribution to GDP doesn’t change the measured inflation rate.
Anyway, it was only the UK that did change GDP given closedowns in government provision of services. The US didn’t.