Horrific CPI report shows worst inflation EVER (using old methodology) ahead of midterms

The latest inflation numbers are out, and the situation is ugly, to say the least.

The Bureau of Labor Statistics (BLS) released what one report described as “a shocking CPI print so unexpectedly hot (a 2.9-sigma upside surprise to consensus) that even the bears were shocked.”

At 8:30 a.m. on Thursday, Oct. 13, the report came out and the markets plunged, only to see the Plunge Protection Team (PPT) jump right in as usual to prop it all back up in a desperate attempt to keep this corrupt, crumbling system afloat for another day.

To call the current economy an absolute disaster “doesn’t even begin to cut it,” one report said. Consumers are paying higher prices than ever for not just goods but also services, including rents for shelter. (Related: Food shortages are also a problem in some areas.)

The new figures point to the Federal Reserve continuing its rate hikes in the coming months. And keep in mind that this disastrous CPI report is the last one to be released before the upcoming midterm election, which certainly bodes ominous for Democrats.

“It is brutal,” said Jim Caron of Morgan Stanley Investment Management. “The issue now is that inflation has moved from the goods sector and has permeated into the services sector.”

Chris Antsey, senior editor at Bloomberg, added that “for Democrats, this is a disaster.”

“Today’s is the final CPI report ahead of the November 8 midterm election,” he is quoted as saying. “You can bet that Republicans will be hitting this hard – worst inflation in four decades.”

“Fed mouthpiece” at the Wall Street Journal (WSJ) Nick Timraous confirmed said that the new September CPI report “seals the case for a fourth consecutive 75-basis-point hike.”

“It calls into question the modal outlook from three weeks ago – that the Fed might be able to stop raising rates after 50 bps in December and 25 in February,” he added.

Goodbye, Mystery Babylon

In order to offset what is known as the “high sticky parts of core” – this is an inflationary term that refers to a particular weighted basket of items that change price relatively slowly – much more goods disinflation is necessary, said Dennis DeBusschere, founder of 22V Research.

Many economic forecasters were humbled by the new CPI report – and they should be. It is clear that the American economy, which in many ways controls the global economy, is deeply unhealthy and in need of major reform – if not a complete overhaul.

“This report raises the risk that we may see a new cycle high in headline inflation before the end of the year,” warned Steve Chiavarone, a senior portfolio manager at Federated Hermes.

“With energy prices moving back up, a mid-90s oil price in December could see us surpass the 9.1% headline peak from June … Looking at the components, what is most worrying is the big jump in services. Service inflation is the most sticky. This is where both shelter prices and wages reign supreme.”

The official claim is that America is now seeing the highest inflation numbers in more than 40 years, but keep in mind that this is true only when using the Fed’s new metrics. Using the metrics of old, what we are truly witnessing now is the highest inflation ever in modern America.

“This isn’t the highest inflation ‘in over 40 years’ – it’s the highest inflation ever in the modern United States,” explained a commenter at a news report about the new numbers.

“Apples to apples using late ’70s and early ’80s methodology would have CPI at +16 percent to +18 percent easily.”

The latest news about the impending destruction of the entire globalist Babylonian economic and financial system can be found at Collapse.news.

Sources for this article include:

ZeroHedge.com

NaturalNews.com