We have all recently experienced the bludgeoning effects of inflation, that is, unless you are independently wealthy, could not care less how much gas costs (because you paid cash for your electric vehicle), have others do your grocery shopping and delivery for you, and live in the top 1% of all wage earners in our Nation. If you are in that latter category, then you are not spending your time reading this blog or concerning yourself with anything the rest of us peons are wrestling with on a daily or even hourly basis. But for those of us who struggle under the weight of inflation, we have wonderful news for you from those currently in control of our government. “The Rate of Inflation is Pruned.” Hooray! Let’s all run out and celebrate! But first, maybe we should consider exactly how much of this “Pruning”, or reduction, is actually taking place.
Consider this blog to be a layman’s tutorial on how inflation is measured. Let’s start by talking about how this “Pruning” of our inflation is occurring. In order to do that, we must first discuss how “The Rate of Inflation” is measured. “The Consumer Price Index (CPI) is a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services.” (bls.gov). Usually, we most frequently see it published tracked over a one-year period of time. The “Core Inflation Rate” usually excludes food and energy, as these two areas of commerce can fluctuate wildly due to forces of nature. For example, a hurricane in the Gulf of Mexico can cause offshore drilling to be curtailed negatively impacting the extraction, distribution, and production of oil and its byproducts. Likewise, a severe drought or an untimely freeze or flood can cause certain food items to skyrocket in price due to extreme shortages. (InflationData.com). The [“Core Inflation Rate”] “rose 6.6% in September from a year earlier, the biggest increase since August 1982. The measure increased 6.3% in August.” (The Wall Street Journal; October 13, 2022). But let’s not get too far ahead of ourselves and get back to the basics.
The government, no matter who is in charge, always manipulates the data to arrive at an acceptable CPI, to put the best face on it for the consuming public. There will always be other organizations with opposing statistics. One such view stated: “The ACTUAL US Inflation rate minus food and energy hit 19.75% in February” (thegatewaypundit.com). We all know rents and mortgages are currently way up, as is the cost of multiple forms of energy, like home heating oil. We also know food prices are up as well. Three years ago, we bought a six-pack of muffins for $3.98, but at our grocery store this last week, we paid $5.98 for the exact same item. That is an increase of just over 50%. With the devaluation of each dollar due to the excessive government printing of new dollars in the last three years, one can easily deduce that you’re actually much worse off than just a 50% inflation in the cost of your muffin pack. But let’s now take a look at what the current government calculated as our Inflation Rate over the last couple of months.
We will acknowledge now the current government’s target CPI, which is anywhere from 1% to 3%. We will take the average of 2% since this has been most referenced, however, we must warn that if this rate is unattainable, it is likely you will see their target rate adjusted upwards to establish what they will call “a new normal” CPI. When the previous President left office in 2022, the CPI was 1.4% (the balance; Kimberly Amadeo; October 14, 2022). Let us now look at the last two months CPI as published by the current administration. September’s CPI number was 8.2% (a four-decade high), down a whopping .1% from August’s 8.3% (bls.gov). Okay, let us do the calculation for you. Assuming our current government maintains the same downward velocity in the published CPI numbers, how long will it take for us to finally get back to the desired 2% CPI? How does 5 years and two months hit you? Yup, that’s right, you will be living with higher Inflation Rates for the next few years. If we were to assume an average of 5% Inflation Rate over that period of time, your $100.00 would be worth $78.00. Think of it another way. It will take $128.00 to buy the same product that only cost $100.00 5 years ago. Again, let’s recall that energy and food are excluded from the CPI. “Fuel oil was up 41%; propane, kerosene and firewood were up 33.8%, and piped natural gas was up 24.1%, and that was as of Jan 24, 2022” (pewresearch.org). You might say, “But the rate of ‘Pruning‘ is actually greater, because the CPI was higher at 8.5% in July, so the decrease is actually happening much faster”. We would also point out that the CPI was also a staggering 9.1% in June! (bls.gov). What comes down, may also go back up. Meanwhile, as time ticks by, you will be paying for things anywhere from 9.1% more per year to . . . some unguaranteed lower CPI, and under the current administration, it may never get to their 2% target.
So yes, we can and must claim that according to the published CPI government documents, “The Rate of Inflation is Pruned“. But at FREEDOMGOFORTH.COM, we would like to put a different spin on “The Rate of Inflation is Pruned”. It is time to make these current governmental polices Rest In Peace! As a Nation spiraling out of control, it is up to each one of us to vote for change, and to do everything within our ability to inform all people we know so that they, too, are aware of the need for us to reclaim and sustain our FREEDOM and LIBERTY. If we sit idly by and do nothing, we embarrass our forefathers who gave so much to establish this great Nation of ours, and we leave our children and grandchildren in a world controlled by Godless, woke elitists who choose their own power and wealth over our Constitution and its principles, over our Bill of Rights, and put to shame our sacred document, The Declaration of Independence.