Contact us
CALL US NOW 1-888-GOLD-160
(1-888-465-3160)

CPI Shows Higher Consumer Prices Despite Skewed Data

  by    0   0

The FOMC raised interest rates on Wednesday, with the decision coming on the heels of the Consumer Price Index data released Wednesday morning by the Bureau of Labor. The report shows an uptick in the price of consumer goods for February, a net gain of 0.1%. Although down from January’s 0.6% increase, a year-over-year look shows consumer prices have risen 2.7%, which is 0.7% above the Fed’s target rate of 2%.

The rising cost of most goods and services is in large part due to the failed monetary policies of the Fed. Money printing and quantitative easing have created runaway inflation, which is driving up prices for consumers.

The biggest jumps YOY were in the energy sectors for gasoline (30.7%) and utility gas service (10.9%). Shelter, transportation services, and medical care all jumped over 3%. While the basket of food items for home consumption fell 1.7%, the cost of eating out rose 2.4%.

The rise in food consumption outside of the home will likely affect lower income households the most, given BLS household expenditure data from 2015, which shows the bottom 20% spending 34% ($1,281) of total yearly food expenditures on food outside the home. The 2.4% increase since last year alone has added another $30 per-family per-year to lower income budgets.

The methodology to compute the CPI is a flawed metric that provides false data. Peter Schiff has proven this with his own research into the actual increase in price of common household goods, which shows a significant difference between what’s reported in the CPI and what consumers are actually paying. Watch a video from Peter where he explains how this works:

 

scam-2-sm

Get Peter Schiff’s latest gold market analysis – click here for a free subscription to his exclusive monthly Gold Videocast.
Interested in learning more about physical gold and silver?
Call 1-888-GOLD-160 and speak with a Precious Metals Specialist today!


Related Posts

The Healing Power of Gold and Silver

Stethoscope sitting on top of a pile of gold bullionThere is healing power in gold and silver. Both precious metals serve as an investment as well as money. Gold and silver also have technological applications. We recently reported that gold is the new green with a growing number of environmental applications. Today, we focus on some of the amazing developments using gold and silver in healthcare applications. Related

READ MORE →

Gold Demand Expected to Increase with Indian Holiday

Indian women in costumes celebratingAn important Hindu holiday will take place on Friday, and Indians are expected to celebrate by rushing to buy gold. Akshay Tritiya ranks as one of the four most important days for Hindus. The word Akshay roughly translates to “the never diminishing”. The day is believed to bring good luck and success. It is also considered […]

READ MORE →

American Middle Class Is Caught in a Vice

100 dollar bill being squeezed in a viceToday the American middle class is caught in a vice: squeezed by debt and facing a devalued currency. Add to that an increasing cost of living, stagnant wages, taxes, and government over-regulation and it’s easy to see why the “bedrock” of the US economy is struggling to keep up. A Pew Research report published in […]

READ MORE →

Student Loan Debt Now Big Problem for Baby Boomers

man signing paper work for a loanWhen we talk about the student loan crisis, we tend to focus on millennials. After all, they are the ones impacted most directly by the ever-increasing burden of student loan payments. Student loan debt is one of the biggest factors driving a growing trend of millennials struggling to transition into adulthood. But increasingly, student loan debt […]

READ MORE →

Investors Rushing for Golden Life Rafts

people laying in raftHedge funds are betting on gold, boosting gold futures and options to the highest level since last November, as investors scramble for golden life rafts. Gold has advanced by 11%  this year, and investors seem to think the gold bulls will continue to run, according to a Bloomberg report. In addition to betting up futures, […]

READ MORE →

Comments are closed.