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Annual Inflation Hits 8.5 Percent, Highest Rate Since 1981

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Due to the rising cost of energy, inflation reached 1.2 % in March. On average, consumers now pay 8.5 percent less than last year.New price data was released Tuesday morning.

The annualized inflation rate reported by the Bureau of Labor Statistics (BLS) is the highest since December 1981, and the monthly rate for March signals an acceleration in price hikes—up from 0.8 percent in February. Inflation rate for March was driven by gasoline prices rising due to the war in Ukraine, and then a worldwide decrease in Russian imports. Prices for gasoline rose 18.3% in March, and overall energy prices rose 11%.

Over the past year, wages increased an average of 5.6%. This is the highest rate of worker compensation in many decades. However, inflation has slowed these gains. The average price rise for all other goods was 6.5 per cent over the past twelve months according to BLS statistics.

While it is not likely that anyone has noticed that gasoline prices are on the rise in the last few weeks, that part of the consumer cost index is expected to dominate news coverage today. This is despite some promising signs suggesting that gasoline prices may be stabilizing, or even dropping. AAA reported that the average national price has fallen by around 8 cents over last week. They are also about 20 cents below their level a month ago.

Later today, President Joe Biden announces new measures to reduce gasoline price rises. The Washington Post The White House is expected to allow gasoline containing ethanol to continue being sold through the summer, according reports. The sale of E15 is prohibited in many areas of the country between June 1st and September 1. However, the White House intends to make emergency orders that override this ban.

E15 can be purchased at only a handful of gas stations across the country, even though it costs a fraction more than regular unleaded gasoline. This is the most important aspect of this proposal It is really This shows how inept the White House can be at responding to inflation.

Milton Friedman once said, “Inflation is always an monetary phenomenon in the sense it can only be produced by a faster increase in money’s quantity than its output.” It is relatively easy for elected officials to increase the quantity of money, as they did during the pandemic by dumping more than $800 billion in stimulus checks into the economy—including making payments to people who never suffered any financial hardship. However, fiscal policymakers don’t have much choice but to take more money out of the economy. Biden has limited options to reduce some symptoms of inflation.

In order to bring inflation under control, it will be necessary for the economy to have higher interest rates. The Wall Street Journal reports. Reports. Last month the Federal Reserve raised the benchmark rate by half a percent.

FREE MINDS

Shanghai’s 25 million inhabitants are protesting against the COVID lockdown, which they have been fighting for many weeks. People being denied access to food, freedom, or even contact with their COVID positive children.

Reason’s Liz Wolfe summarizes the growing backlash—or at least the parts that are escaping China’s attempts to censor online information:

This situation is getting more dire. Two men tried to get out of their apartment and walk their dog, but were stopped by COVID prevention workers who ended up attacking them. One man tried to convince the police to arrest him to at least give him food. People who are intoxicated end up in central quarantine—state-administered facilities where COVID-positive people are sometimes sent so others in their apartment buildings don’t get sick—complain about the fact that it’s so unhygienic, it may well be facilitating greater spread of the virus (or even reinfection). No running water in shared rooms. overflow beds in hospital hallways have grown to be expected by the city’s increasingly angry residents.

The State Department ordered Monday night that non-emergency personnel, and their families, leave New York City “due to arbitrarily enforced local laws and COVID-19 related restrictions.”

FREE MARKETS

Texas Governor. Greg Abbott (R), performative antiimmigration antics threaten crucial supply chains. The Texas Tribune reports:

South Texas truckers have stopped commercial traffic at the border crossing. They blocked south- and northbound lanes from the Mexico side on Monday in protest against Texas governor. Greg Abbott’s decision to have state troopers inspect northbound commercial vehicles — historically a job done by the federal government.

Pharr-Reynosa bridge is one of the most important trade crossings in Rio Grande Valley. It handles almost all the fruit that enters the U.S.A from Mexico. Trucks backed up in Reynosa on Monday for five days straight meant that some Texas produce importers were waiting for several days before their goods arrived. Buyers had already cancelled orders.

The state police estimates that vehicle inspections take 45 to 60 minutes. TribuneMore than 500 trucks are stuck on the Mexican side. Abbott ordered the Department of Public Safety in the State to perform the inspections. He claims that this is needed to end “cartels of illicit contraband and other people crossing our southern border.”

QUICK HITS

• After meeting with Russian President Vladimir Putin, Austria’s chancellor told reporters that the war in Ukraine is likely to escalate. Karl Nehammer stated, “The danger of war cannot be underestimated in its violence.” The New York Times. Russia is continuing to increase its presence in Ukraine’s Eastern Regions.

• Ukrainians are downloading more encrypted messaging apps, while Russians are turning to virtual private networks.

• Cops “skew more White, Republican, politically active, male, and high-income than their jurisdictions,” according to a new study.

• Donald Trump endorsed fellow media-personality-turned-politician Mehmet Oz in the seven-way Senate primary race in Pennsylvania, citing Oz’s history of being “popular, respected, and smart” and because the doctor said nice things about Trump’s health.

• Are we really doing this again?

• Are we really doing this still?