You can feel every time you fill up your gas tank or go to the grocery store that America is suffering the worst inflation in 40 years. American families like yours are watching as prices spike and wondering when it will stop. According to the Biden administration, not any time soon. In fact, it could get worse before it gets better. Christian Datoc reports for the Washington Examiner:
The White House Council of Economic Advisers noted that “there has been substantial run-up in energy prices since February resulting from the Russian invasion of Ukraine” and that “energy and commodities prices will likely contribute substantially to inflation in the coming months.”
An increase in energy prices of 3.5 percent contributed substantially to headline CPI growth in February. Energy contributed 26 basis points to monthly inflation in February, roughly a third of the total. 2/ pic.twitter.com/BGlqbR7wyE
— Council of Economic Advisers (@WhiteHouseCEA) March 10, 2022
The CEA added that half of current year-over-year inflation can be attributed to energy, “vehicle-related price increases, and pandemic-affected services.”
“Month-to-month CPI can be volatile. Looking at the average rate over the last three months (December, January, February), headline inflation has been about 0.7 percent, unchanged from 0.7 percent in the three months before (September, October, November),” the council added. “We know that the recovery from the pandemic will not be linear. The Council of Economic Advisers will continue to monitor the data as they come in.”
Oil and gas prices rose significantly in February due to Russia’s buildup of Russian forces along the Ukrainian border and speculation surrounding Russian President Vladimir Putin’s then-imminent invasion.
Action Line: Inflation is a stealth tax on your retirement and your standard of living, and if you don’t plan for it, life can become very difficult. If you’re retired or soon to be retired, you need to build your investment portfolio with inflation in mind. If you need help, I would love to talk with you. If you would like to get to know me before we talk on the phone, there’s no better way than signing up for my free monthly Survive & Thrive letter. In the letter each month, I encourage and push you to achieve the personal and financial security goals you’ve set for your family. Click here to subscribe. We’ll get to know each other, and get serious about your future success.
E.J. Smith - Your Survival Guy
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