Lost in the brouhaha over the announcement of Uncle Joe‘s plan to cancel student debt this week was a puzzling claim from The New York Times columnist Paul Krugman.
Krugman claimed that inflation was low this summer, contrary to predictions of pain. His observations fly in the face of even a basic understanding of economics.
“Not long ago, many people were predicting a long, hot summer of inflation,” Krugman wrote.
“To their surprise — and, for some Republicans, dismay — that isn’t happening,” the pundit proclaimed. “Overall consumer prices were flat in July, and nowcasts — estimates based on preliminary data — suggest that inflation will remain low in August.”
It is true that regarding month-to-month inflation from June to July, there was zero overall inflation. Of course, what Krugman leaves out is that year-over-year inflation in July was at 8.5%.
That is now the fifth straight month with year-over-over inflation at 8% or higher. If that is considered low inflation, one would shudder to think of what Krugman considers “high inflation.”
He also pointed to evidence that “beef is already getting cheaper.” Yet, high-end steak and other red meat is getting cheaper not because inflation is coming down, but because demand for such items are decreasing as shoppers search for cheaper options. As noted by the Robb Report, ground beef is increasing in price.
“Over the same four-week period ending August 7, ground-beef prices jumped about 7 percent…
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