Joe Spills Oil Reserves 2 Tamp CPI Report?

So why’d Biden release more strategic oil reserves to bring pump prices down a few pennies? Consider economists predicting still higher inflation in June CPI report issued Wednesday. Joe can still read.

On Monday, Yardeni Research Pres. Ed Yardeni told Fox News to expect bad news again in that the CPI & core CPI is expected to rise to 8.8% from May’s 8.6% 40-yr-high number, at least, as traced by Trading Economics. Said the markets vet: “Lower-wage workers are the ones that are getting squeezed hardest” because “they have no choice but to allocate most of their budgets” to putting fuel on the table & gas in the car as well as pay the landlord on time. Meanwhile, “high-wage workers are also getting squeezed by inflation,” but most likely have “more savings they can dip into. A WSJ article on the same topic suggests both consumer groups are already also cutting back on purchases of all kinds, especially on vacas & entertainment, but also on food & gas.

One cautionary note, is that the Labor Dept’s original monthly CPI numbers are often “tweaked” up or down as the bureaucrats there gather more data points. Yet, Yardeni said he thinks the “headline inflation rating,” which includes food & energy will “be up something like 1.1%” and over an “8% inflation rate.” As Joe & team read the advanced copy, they no doubt belatedly tried to counter the news with this, that & the other tactic and there ARE some signs that some consumer prices are starting to “moderate”. But, reminded Yardeni, “that undoubtedly will be somewhat related to a slowing economy & in some areas a recessionary economy.” Is the Fed’s expected 75-point hike in interest rates later this month still another “wild card” to take into account?

Davd Soul