Now yesterday the united states inflation rate increased by 0.3% and jumps to 8.6% which is the highest since 1981 a 40-year record, the Inflation rate instead of coming down to make the lives of the U.S. citizens better and easier it keeps going up making the life of the U.S. citizens a lot more harder and it is not fair on them. And it looks like the inflation rate is not planning on coming down anytime soon as the price of gas, food, and shelter (generally as the cost of living) keeps increasing. About two (2) weeks ago I made a post about the Eurozone hitting a 50 year's all-time high and now yesterday the United States has hit its 40 year's all-time high, based on the recent news update, the inflation rate as of April this year was 8.3% and now in May it has increased to 8.6%. The FED (Federal Reserve System) would have to tighten the monetary policy further to get inflation under control. This is not looking good at all.
Increased Inflation Is One Of The Cost War
According to Michael Saylor, the CEO of Microstrategy and also a Bitcoin Maximalist, Inflation has not peaked yet, and neither has Bitcoin and That Bitcoin is the only hedge to increasing inflation rates. The inflation rate has not peaked yet because the prices of commodities are still going up. But Bitcoin has a limited supply of 21 million but unlimited demand and the adoption rate keeps increasing despite the drop in price and the bear market, so the price is continuously going up over time. Bitcoin growth will never peak. Some very common questions on Crypto Twitter recently is this, Bitcoin is supposed to be the hedge of inflation right? but the price of Bitcoin has been declining despite the high inflation. Does that mean Bitcoin hasn't bottomed yet? what do you think about these questions?
The high inflation rate should be treated with utmost urgency because things are seriously getting worse, as a result of the excessive money printed by the government, and the Russian war with Ukraine is really having huge effects on the economy.
Inflation data according to CNBC shows:
Energy prices broadly rose 3.9% from a month ago, bringing the annual gain to 34.6%. Within the category, fuel oil posted a 16.9% monthly gain, pushing the 12-month surge to 106.7%.
Shelter costs, which account for about a one-third weighting in the CPI, rose 0.6% for the month, the fastest one-month gain since March 2004. The 5.5% 12-month gain is the most since February 1991.
Finally, food costs climbed another 1.2% in May, bringing the year-over-year gain to 10.1%.
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