Inflation Alert! Bureau of Economic Analysis announced the โcore PCEโ price index, which excludes food and energy (and understates inflation, which is why the Fed relies on it) jumped by 0.50% in December from November, and by 4.9% year-over-year
Remember back in the summer when JPow was saying their target for inflation is 2%? Well, they have certainly BLOWN by that:
The overall PCE inflation index (includes food and energy) was up by 0.45% in December from November, and by 5.8% year-over-year, the worst reading since 1982:
Outside of raising prices, inflation's other sinister effect is on wages. Adjusted for inflation, per-capita disposable income was down 0.3% for the month and down 0.5% year-over-year--continuing the avalanche that started last summer when inflation really started to take off:
