The White House and their friends in the press want you to believe that inflation is a problem of the past. Because how can you excuse spending $3.5 trillion in economic stimulus if inflation is afoot? It can generate economic activity that will push prices even higher.
As the Wall Street Journal notes, the goalposts on inflation are being changed. Better to look at the price of meat rather than read the liberal media.
According to the Journal:
“We’re old enough to remember a time—earlier this year—when 5.3% consumer-price inflation was considered high. No longer. Nowadays when price rises hit that pace, as they did in August, everyone’s supposed to relax because that means inflation is moderating.
“Only an economist or politician could try to define inflation down this way, and plenty will. The argument is that August’s price rise of 0.3% was a tad slower than the 0.5% in July and 0.9% in June. Core inflation, which excludes food and fuel that households actually buy, was more contained at 0.1% in August, or 4% at an annual rate from 4.3% in July. The Federal Reserve’s inflation target is 2% . . .
“Pardon families if they doubt this because they don’t have the luxury of living on core items. Prices for food consumed at home rose 3% over the past year, and prices for proteins such as meat, fish and eggs have increased 8%. Gas and electricity price rises accelerated from July to August, and the government’s index for all energy items has increased 25% over the past year. Producer prices, which work their way into consumer prices, were up 8.3% in August from a year earlier.”