- by New Deal democrat
There’s no big economic data today, so let me update something I posted last week, in which I warned readers to expect a shock in the next CPI report.
I wrote that “based on past history and using conservative assumptions, the model forecasts a 1.8% increase in CPI between March and April. Using normal assumptions it would forecast a 2.1% increase in these two months. And if I were to plug in today’s $3.92/gallon average vs. $3.72, the model would forecast a 2.5% increase in consumer prices by the end of April.”
Well, as of today’s weekly update from the E.I.A., gas prices as of the 20th were $3.96/gallon:
That would translate to an increase of 2.6% in consumer prices using my K.I.S.S. method of estimating the ballpark increase.
And according to GasBuddy, as of today, gas prices are right at $3.99:
which would translate into a 2.8% increase.
There is no way on earth wages would be able to keep up with that kind of shock.
