by Dismal-Jellyfish
Interest costs and the national debt could be even higher if interest rates continue their upward trajectory and outperform CBO’s economic forecast.
They planned for this, right?!?!?! CBO estimated CPI inflation will total 4.7 percent in CY 2022, 2.7 percent in 2023, and 2.3 percent per year thereafter
www.bls.gov/news.release/cpi.nr0.htm
Oh…. The CBO has underestimated inflation by 3.5% (74.5%) so far as Over the last 12 months, the all items index increased 8.2 percent before seasonal adjustment…
This calendar year:
| Month | Reading |
|---|---|
| January | 7.5 |
| February | 7.9 |
| March | 8.5 |
| April | 8.3 |
| May | 8.6 |
| June | 9.1 |
| July | 8.5 |
| August | 8.3 |
| September | 8.2 |
| YTD reading (75.5/9) | 8.38 |
With 3 readings left in the year, even if inflation comes in at 0 for the rest of the year, 2022 inflation would be at 6.29%, 33.8% greater than the CBO’s 4.7% estimate for CY2022.
YIKES
Greater interest rates to fight this inflation, lead to higher interest payments:
fred.stlouisfed.org/series/A091RC1Q027SBEA
| Quarter | Amount |
|---|---|
| 2022-07-01 | 736.579 |
| 2022-04-01 | 648.454 |
| 2022-01-01 | 603.280 |
| 2021-10-01 | 600.423 |
| 2021-07-01 | 592.912 |
More Fred Data (numbers go up…):
fred.stlouisfed.org/data/A091RC1Q027SBEA.txt
Buckle up…
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