Source: Overseas Network
U.S. Federal Reserve System Headquarters (Source: Vision China )
The U.S. Department of Labor announced the U.S. Consumer Price Index (CPI) for February on March 10, local time. Data show that in February, the U.S. CPI rose 0.8% month-on-month and 7.9% year-on-year, the largest year-on-year increase since January 1982; core CPI excluding food and energy prices rose 0.5% month-on-month and 6.4% year-on-year, the highest level since August 1982. The largest year-on-year increase since. As the U.S. inflation rate continues to set new historical records, the United States is "paying the price" for its wrong policies.
First of all, the still-unsolved COVID-19 epidemic in the United States is an important "promoter" for the continuous increase in CPI data. The epidemic continues to impact the stability of the global supply chain and drive up the cost of consumer goods. Data show that U.S. food prices rose 7.9% year-on-year in February, the largest year-on-year increase since July 1981; used car prices surged 41.2% year-on-year, showing that the automotive market is still plagued by insufficient production capacity caused by insufficient chip supply and other issues. The epidemic has also had an impact on the real estate market. U.S. housing prices rose 4.7% year-on-year in February, the largest year-on-year increase since May 1991. "The New York Times" stated that due to the impact of the epidemic, Americans are enthusiastic about buying houses in order to obtain more independent space. However, after the 2008 economic crisis, the supply of housing in the United States was already tight, coupled with the shutdown and supply shortage caused by the epidemic. and labor constraints, developers are unable to expand production, further exacerbating the shortage in the real estate market, pushing up rents and housing prices.
Secondly, the fiscal and monetary policies of the U.S. government are also the "booster" for the rising inflation rate in the United States. Since the outbreak of the epidemic in the United States, the U.S. government has introduced multiple rounds of new crown relief measures totaling nearly 6 trillion US dollars. One of the very important measures is to directly provide cash to the American people. ABC (ABC) said that these stimulus checks and increased unemployment benefits stimulated consumer spending, which led to the occurrence of high inflation. The British " guardian " also pointed out that in the past year, due to strong consumer demand and supply shortages of automobiles, building materials and household products, the prices of many commodities have increased. At the same time, the United States continues to open the floodgates, which not only makes the U.S. economy "exuberant" but also causes fluctuations in the international commodity market priced in U.S. dollars, causing rising costs on the production side. For example, energy prices in the United States rose by 25.6% year-on-year in February, with gasoline prices rising by 38% year-on-year, and fuel oil prices soaring by 43.6% year-on-year. All this shows that the fiscal and financial policies originally introduced to "rescue the economy" are becoming more and more like an addictive poison, chronically poisoning the U.S. economy.
Finally, the US government’s irresponsible foreign policy is also “adding fuel to the fire” to US inflation. On the one hand, the tariff stick wielded indiscriminately by the US government is causing increasing harm to American consumers and businesses. Taking the U.S.’s imposition of additional tariffs on China as an example, CNN reported on January 26 that U.S. importers have not been able to bear these tariffs since 2018, citing data from the U.S. Customs and Border Protection Agency. Costs have been paid out at nearly $123 billion. The report pointed out that the tariffs have impacted a large number of Chinese-made goods, including baseball caps, bags, bicycles, televisions and sports shoes. The tariffs make it more expensive for U.S. companies to import these goods from China, many of which cannot be produced in the U.S. fast enough to keep up with demand.
On the other hand, the U.S. government continues to provoke geopolitical conflicts and create geopolitical tensions, but in the end it reaps the consequences and hits its own feet. In fact, many economists originally expected the U.S. inflation rate to peak in March. However, after major changes in the geopolitical situation in Europe and the United States wielding sanctions against Russia, the prices of commodities such as wheat and oil soared. . On March 8, the price of wheat on the Chicago Board of Trade reached a record high of US$13.635 per bushel (approximately 3,206 yuan/ton). Crude oil futures prices hit a high of $139 per barrel this week. Despite the current correction, the price on March 10 still reached $116 per barrel.Affected by this, on March 6, the average domestic gasoline price in the United States exceeded $4 per gallon since 2008. Oxford Economics Chief Economist Casey Bostjancic said in an interview with Wall Street Journal that the U.S. inflation rate for the whole year may be closer to 4%, rather than the 3% previously forecast. . U.S. Treasury Secretary Yellen warned on March 10 that as food and fuel prices continue to rise, U.S. inflation data throughout the year may be at "very disturbingly high levels."
In the face of high inflation, American media such as the New York Times and the Wall Street Journal all mentioned "stagflation", a term that caused pain to Americans in the 1970s. In fact, just as American politicians sing high-pitched slogans such as "human rights" and "democracy" and wantonly interfere in the affairs of other countries, the policies they formulate are becoming "poison" that makes the lives of low-income groups in the United States more difficult. (Nie Shuyi)
