They Said Inflation Would Be ‘Transitory.’ The Data Say Something Different.
Astute observers might notice that October's 0.9 percent increase in CPI represents the fastest monthly inflation in 30 years. These figures, quite frankly, obliterate any notion that our inflation is “transitory” or trivial.
At nearly 7% today and potentially exceeding 10% next year, the current inflation rate is anything but "trivial". While it has been described by this administration as "transitory", that can be said of everything. Life is transitory. What does seem clear is that the current high rate of inflation isn't going anywhere soon and is likely to get worse before it gets better. And even when (and if) inflation returns to normal, prices aren't going to go back down.
While some high prices can no doubt be attributed to COVID-19 (or more accurately, to government's overreaction to COVID-19), even this isn't sufficient to explain the current high inflation. Government seems to feel (or just doesn't care) that it can print unlimited sums of money without affecting price. That isn't how things work. Not only does throwing money at the public yield higher demand for everything, but it also discourages people from working which further exacerbates shortages and prices. Government policy may not be the only factor here but it sure seems to be the biggest.
