After the release of the April Consumer Price Index (CPI) report, a number of American economists and bureaucrats said that inflation had peaked and it was possible that it would decreases. However, statistics from the US Department of Labor indicate that the CPI rose 8.6% from a year earlier, as May inflation data hit a new all-time high.

May CPI data shows inflation has not peaked

The US economy isn’t looking so hot these days and after shutting down the economy due to a respiratory virus and printing out billions of dollars in stimulus, it seems those ideas were huge mistakes . Inflation is the general increase in the cost of goods and services, and currencies like the US dollar cannot buy as many goods and services as they could when inflation was lower. Reports show that almost everything in supermarkets now has a higher cost and prices for things like rent, petrol, cars and housing have skyrocketed. Prices for goods and services continued to rise even as politicians said government inflation would be “transient”.

When the April CPI data was released, some people even claimed that inflation had “peaked”, but the latest May CPI data shows that this claim has not materialized. US inflation data from Labor Department measures show last month’s CPI hit a 40-year high of 8.6%. Inflation has been so bad in the United States that stimulus checks, expanded child tax credits, extended unemployment benefits and even the slight increase in wages have been wiped out by rising costs goods and services.

Labor Department metrics show rising food, gas and energy prices pushed CPI data higher and housing costs were a major contributor to the rise inflation data from last month. So, while a slight increase in wages took place for some American workers, real wages fell by 0.6% compared to April. Economists who noted the April data as a “peak inflation” are beginning to notice that the cost of goods and services continues to peak. Morning Consult chief economist John Leer said May’s CPI was shocking.

“It’s hard to look at May inflation data and not be disappointed,” Leer explained on June 10. “We just don’t see any signs that we’re in the clear.”

“It might not have been a good idea to shut down the economy for a respiratory virus”

Meanwhile, US President Joe Biden continues to blame Russia and Vladimir Putin. “Today’s inflation report confirms what Americans already know: Putin’s price hike is hitting America hard,” Biden said. stress at a press conference this week. However, many people say that the shutdown of the US economy, the shutdowns and the Covid-19 stimulus bills were horrible ideas. “I’m starting to think maybe it wasn’t a good idea to shut down the economy because of a respiratory virus,” said economist Jeffrey Tucker. wrote Friday.

U.S. Representative Thomas Massie, a Republican from Kentucky, shared statements he made in 2020 when he said it wasn’t the best idea to pass the massive stimulus bill. In January, Massie said“Too many people don’t see the bill passing would cause massive inflation, passing it without members present would set the tone for nationwide mail-in votes, the money would enable all lockdowns, and pay people for not working would kill productivity in the United States.” Yet many critics gave Massie a hard time over his statements to the contrary and resorted to ad hominem attacks.

“Massie just says whatever stupid thing comes to mind,” one individual said. wrote in response to Massie’s tweet at the time. The Kentucky representative recently hit back at the individual’s comment and said this “tweet hasn’t aged well”.

In 2020, Democratic Senator John Kerry said “Congressman Massie tested positive for being an a**hole”. The Kentucky Rep also decided to poke fun at Kerry’s tweet and remarked that he predicts “Democrats will sequester John Kerry and his dogma of rising energy prices in a rock formation until November at less”. Massy added:

Here is his silly tweet when I objected to the first $2 trillion printing spree on March 27, 2020 – because it was going to cause inflation.

Massie was not alone in opposing the trillion-dollar monetary expansion, as gold bug and economist Peter Schiff were quick to criticize those who supported the stimulus. On the same day as John Kerry’s tweet in March 2020, Schiff wrote“As the Fed will create all this money out of thin air, people will pay the cost through inflation. Consumer prices are about to skyrocket, wiping out the savings of millions of Americans and destroying the purchasing power of the wages of millions more.

Keywords in this story

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What do you think of the latest CPI data and opposing views that oppose the shutdown of the economy and massive spending in 2020? Let us know what you think about this topic in the comments section below.

Jamie Redman

Jamie Redman is the News Manager at Bitcoin.com News and a fintech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He is passionate about Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written over 5,000 articles for Bitcoin.com News about disruptive protocols emerging today.




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