The July Consumer Price Index (CPI) data came out this week. For the first time, the numbers were in line with expectations, leading many mainstream pundits to declare “transitory” inflation is already starting to cool down. Peter Schiff broke down the report in his podcast. He said inflation is far from cooling off. In fact, when it comes to rising prices, you haven’t seen anything yet.
Peter also noted the Fed has changed the definition of “transitory.” It now only applies to the rate of inflation, not actual prices. The central bankers now concede these price increases are forever.
The increase in the cost of living is not transitory. It’s permanent. And the hope is, by the Fed, that after we get a big increase in our cost of living, the cost of living will continue to go up from that elevated level, but at the same rate that it was before we had this transitory period of high inflation. Which to me completely destroys any credibility the Fed has in claiming that they’ve successfully contained inflation at 2%.”
