Inflation is running hot right now. The May CPI data came in hotter than expected, a trend we've seen every month this year. But the Federal Reserve and the mainstream financial media continue to insist inflation "transitory." Peter Schiff recently appeared with Tucker Carlson on Fox News to talk about skyrocketing prices.
Peter started by pointing out that the year-over-year increase in CPI is 5%, and if you annualized the last three months, it will hit somewhere in the neighborhood of 8% by the end of the year.
But I think the back half of the year is going to be a lot worse than the front half because businesses have been somewhat reluctant to pass on their exploding costs to their customers. I think they've been hoping the Fed was right. But I think they're going to give up hope later in the year and they're really going to start increasing prices at a much greater rate."
We're already seeing some companies raise prices to cover rising labor and material costs. Chipotle recently announced a 4% increase in menu prices.
Tucker asked if there is a way out of this. Peter said, "Unfortunately, no."