When inflation began rising a few years ago, the Fed called it “transitory.”
But just a few months after, they took that statement back. And not a moment too soon because…
Today, years later, the Consumer Price Index (CPI) print from the U.S. Bureau of Labor Statistics shows inflation is hovering around 3%, which is still above the Fed’s “allowed” rate of 2%.
Three percent may seem insignificant when viewed out of context, but the big-picture reality is:
From January 2020 to January 2025, the Consumer Price Index (CPI) ballooned by 22.7%.
That’s a 22.7% loss of purchasing power you don’t get back.
And when prices go up, they almost never come back down.
Even President Trump admitted:
“I’d like to bring [grocery prices] down. It’s hard to bring [prices] down once they’re up. You know, it’s very hard.”
The fact is…
CPI data show prices for almost all products and services—including personal care, clothing, insurance, rent, medical care, property taxes, and food—have gone UP in the last 12 months.
In other words…
The rate of inflation may have slowed down compared to 2022, but that only means…
Prices are still going up… just not quite as fast as they once were. You are still bleeding purchasing power, but at a slower rate… whoop-de-doo!
Facts are facts.
Economists, analysts and government spokespeople can massage talking points about inflation all they want. But the rising costs we’re all facing right now remain a long-term pain in the pocketbook.
Why? Because inflation is never “transitory”…
Inflation is cumulative.
Every time it goes up, your purchasing power goes down.
And who does Washington blame?
Biden said, “…for all we’ve done to bring prices down, there are still too many corporations in America ripping people off: price gouging, junk fees, greedflation, shrinkflation.”
Meanwhile, President Trump blames Biden for causing the inflation.
But regardless of the cause:
Inflation is here, and it affects companies, supply chains, and labor too.
When costs of supplies and labor go up, prices must go up to cover these costs, or a company could go out of business.
And for what or who caused it?
Inflation wasn’t caused by greedy corporations or a tight employment market or any other external force…
It was caused by the TRILLIONS of dollars the Fed printed over the last few years to help pay for the TRILLIONS of dollars Washington spent.
The federal government is still spending over $5 billion per day, and despite President Trump’s efforts, they still won’t have enough money to cover Biden’s overdue bills.
This means inflation and your loss of purchasing power won’t be “transitory”…
And throughout all this inflation, we’re sure you’ve noticed the surge in the gold price, being the inflation hedge its holder relies on. Gold’s rising value won’t be “transitory” either.
Please don’t hesitate to reach out to us with any questions you may have.
May you be safe and well during these uncertain times.
Paul Stone, CEO
Colonial Metals Group