Consumer prices increased by the most in four months in December.
According to the Bureau of Labor Statistics (BLS), price inflation rose 0.4% last month, up from the 0.2% bump in November. The increase was driven by gains the things you need: gasoline, food, shelter, and apparel.
Is this the beginning of surging price inflation?
The minds at the Federal Reserve are already sounding the alarm, urging everyone to get ready for a higher cost of living.
Kansas City Federal Reserve Bank President Esther George said in prepared remarks on Tuesday:
“In contrast to these sectors, price inflation for many other categories of consumption (particularly goods) has moved up, sometimes quite sharply.
Such a scenario does not suggest higher inflation is a near-term threat, but rather that inflation could approach the Committee’s average inflation objective more quickly than some might expect.”
This came soon after Federal Reserve Bank of St. Louis President James Bullard told reporters to get “used to” higher inflation.
“The quiescence of inflation that has characterized the last decade may not be a good guide for what’s going to happen in 2021, where I would expect more volatile pricing, possibly higher inflation than we’re used to,” he said.
Buy your gold, silver, bitcoin, and even agricultural commodities.
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