Deficit spending was supposed to produce this, so here it comes. Consumer prices are now up 2.9% over 2017, the highest rate of growth since 2012.(1) Worse, it’s outstripping growth in wages — further draining the population of the ability to spend money.
Now I’m concerned about how inflation is calculated. Health insurance has become a huge budget items for many people, and rates are rising in the 13% per year range. There’s nothing that’s declining to offset that rather massive increase.
My suspicion is that the “real” rate of inflation is much higher than the government is reporting, and a growing part of the US population will have trouble making ends meet.
Sources: The Wall Street Journal, July 12, 2018.