Updated: Jul 29
Europe. Germany’s May Harmonized Consumer Price Index (HCPI) year over year was 8.7% highest in 60 years and price of energy rose 38.3%. The Italy HICP rose from April 6.3% to May 7.3%. The EU’s CPI year over year was 8.1% all-time record high since Euro came into existence well above the 7.7% forecast.
U.S. Manufacturing was +1.1% in April, but in May the rate crashed to -7.3%, so a significant loss in things being made. Housing Prices rose 21% year over year. The U.S. Housing price used to be included in the calculation of the CPI, but changes to Housing calculations in the CPI leave out the Housing Price. Housing is one of the largest markets in the U.S. economy, so is a good indicator of the strength of the dollar. Additionally, since inflation rates of the past can no longer be compared to present inflation rates a person can no longer simply gloss at the numbers on a chart for a reasonable, historical comparison. Why was the CPI calculation changed? According to a U.S. Senate investigation the reason for the change was because inflation rates were climbing each year and the new CPI fixed the problem. A change in calculation does not fix a problem. Numbers are just mental if not attached to some kind physical reality, which the CPI is supposed to be since it measures the prices of material goods. Who are these guys? Brains in a vat?