Commentary
According to the University of Michigan, inflation expectations index for five to 30 years reached a 12-year high of 3.2 percent. At the same time, the consumer sentiment index declined to 63.5, compared to a pre-pandemic high of 300. The deterioration in the situation of consumers is evident.
The official narrative is that inflation is under control. However, many tend to forget that reducing inflation from 9.0 percent to 5.0 percent is relatively easy. The challenge is to bring it further down to the Federal Reserve’s target of 2 percent.
Inflation is a hidden tax. A governments always try to hide the loss of purchasing power or blame anything but itself, but the only reason that causes most prices to rise at once is printing money well above the actual demand for it….