“This Is Beginning to Look a Little Bit Like a Latin American Country.” – Inflation at Highest Level Since 1991
The rate of inflation is rising in the US at rates we haven’t seen in a very long time. Government spending is off the charts. Desmond Lachman, an economist and senior fellow with the American Enterprise Institute (AEI) the U.S. is beginning to resemble a Latin American country given its inflation, government spending, and printing of money. The Bureau of Labor Statistics (BLS) reported this morning that the CPI has increased in large part due to increasing energy costs.
See our interactive graphics on today’s new Consumer Price Index data
Roaring inflation compounds Cubans’ economic woes Cubans woke up all last year wondering where they could find basic goods such as milk, pork, rice, beans, medicine or shampoo. These days, they also ask themselves: “if I do, what on earth will it cost?” Amid widespread shortages, the near-bankrupt, import-dependent country has increased sales of goods in convertible currencies like the dollar over the last year, even as it stopped exchanging pesos for those currencies. That has forced many Cubans to acquire convertible currencies on the black market where they have surged to as much as threefold the official rate since the government sharply devalued the peso in January. Alternatively, Cubans must purchase the products “at even higher peso prices from resellers,” said Cuban economist Omar Everleny. Many goods are simply no longer sold in peso shops despite billions more pesos now being in circulation. The result of dollarization, scarcity and devaluation: prices have skyrocketed and inflation will likely come in at a minimum of 500%, and as much as 900% this year, according to Pavel Vidal, a former Cuban central bank economist who teaches at Colombia’s Pontificia Universidad Javeriana Cali. “Every day becomes much more difficult because the prices of everything continue to rise,“ Source: reuters.com