There’s talk (i.e. by the Fed, BLS, and mainstream media) that there’s no inflation.
Inflation is the rise in prices.
In a time as chaotic as this, 8% may not seem like much. But at the same time, bond yields are at all time lows, and inflation is currently “zero.”
Oops… not zero.
And these are just the official figures.[1]
Real inflation is far higher. For example, a Ford Taurus cost $18k in 1996 and $28k last year. But because of “hedonics” this isn’t counted as inflation.
Hedonics is the principle that the upgraded vehicle has more bells and whistles and that the higher price reflects added value, not inflation.
This is just one of the ways the BLS massages official inflation down.
So in reality, we are in a recession where demand has fallen, but prices are rising.
Footnotes[1] Current US Inflation Rates: 2009-2020
