Inflation expected as high as 4% in Apr in USA

[Sterbens]

How is this going to affect bitcoin? If we make an analogy with commodities and particularly those used on the industrial processes, it will have a lift effect in price, sometimes much higher that what could normally be for other assets. I think is a good moment to stockpile bitcoin, copper... even tin, although is a bit expensive already.

based on the impact of the lag level, indeed in my opinion there is no better opportunity if we have to devise all means to be able to hoard large amounts of Bitcoin for price volatility in the future. obviously it provides increasing value resilience. options such as copper, petroleum and others for me have not been able to touch the area. because it really depends on the suitability of interests and the flexibility of financial management. and bitcoin is much more efficient now and then.

[teosanru]

This is the figure for April, yet still quite a figure to be dealt with for those who live on salaries, that tend to go after the inflation, and great news for those who have a mortgage or own money, since they are on the winning side for now - until interest rates catch up.

How is this going to affect bitcoin? If we make an analogy with commodities and particularly those used on the industrial processes, it will have a lift effect in price, sometimes much higher that what could normally be for other assets. I think is a good moment to stockpile bitcoin, copper... even tin, although is a bit expensive already.

Almost every country around the world has been hit so badly with inflation this time. India has shown a wholesale inflation rate of more than 12% and a retail inflation of more than 6%, I think capital appreciation is going to get much more difficult now as the interest rates are still quite low, Infact, even most of the Term Deposits are offering lower interest rates than the Inflation rate of the country this time. I think the only source of Investment left to protect your Capital from Inflation is just Stocks and Crypto. While Stocks too should be chosen in an intelligent manner. High Debt stocks can become riskier if Interest rates try to coincide as per Inflation Rates, High debt companies might not be able to Maintain Adequate ROE if this happens.

[Johnyz]

This is the figure for April, yet still quite a figure to be dealt with for those who live on salaries, that tend to go after the inflation, and great news for those who have a mortgage or own money, since they are on the winning side for now - until interest rates catch up.

How is this going to affect bitcoin? If we make an analogy with commodities and particularly those used on the industrial processes, it will have a lift effect in price, sometimes much higher that what could normally be for other assets. I think is a good moment to stockpile bitcoin, copper... even tin, although is a bit expensive already.

Almost every country around the world has been hit so badly with inflation this time. India has shown a wholesale inflation rate of more than 12% and a retail inflation of more than 6%, I think capital appreciation is going to get much more difficult now as the interest rates are still quite low, Infact, even most of the Term Deposits are offering lower interest rates than the Inflation rate of the country this time. I think the only source of Investment left to protect your Capital from Inflation is just Stocks and Crypto. While Stocks too should be chosen in an intelligent manner. High Debt stocks can become riskier if Interest rates try to coincide as per Inflation Rates, High debt companies might not be able to Maintain Adequate ROE if this happens.

Most of the country now are suffering from a big inflation and that is expected considering the money that the government printed over the past months to fight this pandemic. Debt per capita are also rising and that can affect a country in long term if they are not able to address this problem. We are still on a pandemic though some countries are slowly going back to normal which is a good sign, we can still feel the effect of this pandemic in the next 2 - 5 years.

[kotajikikox]

Bitcoin will be a better option. Its volatility will always make money to someone who trades it. As inflation goes high every month, the savers and the ones who live on salaries will have their money but the purchasing power will decline as inflation stays. This is the reason why hedge fund managers are so bullish that they are adding Bitcoin to their balance sheets.

Wrong the volatility will only helps those who are capable with bit funds and can wait for long but what about those who are making money in a short period of time? they are the most affected one on this matter.

https://www.cfr.org/in-brief/how-much-too-much-us-inflation-debate-heats

This is what tackles this one ?

How much has inflation increased?
Let’s start with some facts. Inflation, as measured by the Federal Reserve’s preferred metric, which is called core PCE (this tracks personal consumption expenditures excluding food and energy), was roughly 3.1 percent on a yearly basis through April 2021. The Fed’s publicly announced framework for managing inflation—in which it aims for a 2 percent rate over the long run but can tolerate periods when the rate is slightly higher to offset periods when it is slightly lower—may not make this rate of roughly 3 percent seem extremely problematic. Similarly, surveys indicate that consumers expect inflation to be around 3 percent, a slight increase from the public’s expectation of about 2.5 percent that had prevailed for a long time.

Taking all of this into account, Federal Reserve policymakers have consistently said they will be patient before raising interest rates, and that they see any spikes in inflation above the acceptable range as being purely transitory—the result of temporary bottlenecks as the U.S. economy reopens after the pandemic-induced shutdown.

for me this will Hurt everyone but it looks like not that affecting the market for now.

[uneng]

Not sure how they did this 4 percent prediction, because I expect it even much more than this. As I can see, the inflation rate is rising each year and government tries promises to control it and they will usually try to decrease the rate by unfortunately using federal reserve dollars and printing too much money to increase the funds while they will make a bigger mistake by providing too much money supply which can be the reason for decreasing the value of dollar against gold and other assets.

That's the official one, things change individually a lot more. If you took college costs as the inflation rate in USA, there would be 10x and even more increases on average, if you took minimum wage then you would have nearly zero increase for the past 20 years.

Basically it all depends on what you take as your average, they put in this insanely complicated bunch of stuff and then they say it is 4% or less, but there are tons of stuff that got 5%+ more expensive. I am not American so I do not care about that, but in my nation it is said that we have about 7% in inflation whereas I can tell you that it is more than 30% very easily, it is drastic here, we are living a horrible period and I do not know what is going to happen if we keep this up. Long story short the 4% is official number and we may not consider that as the truth, it is just what they tell us but it is really not that low.

Yes, official numbers are useless. The daily life is what really matters. Prices in supermarket are spiking insanely in a monthly basis, if not weekly. If we count all these increasements it surpass the official inflation easily during one year period. It's a good moment to exchange funds into bitcoin, otherwise people will be losing money even if they have some kind of traditional investments, especially fixed income. Actually since last year the scenario looks really bad and from 2020 on I've been trying to have less money in fiat as possible. Only maintaining some fiat balance for daily expenses and that is all.

[Sithara007]

That's the official one, things change individually a lot more. If you took college costs as the inflation rate in USA, there would be 10x and even more increases on average, if you took minimum wage then you would have nearly zero increase for the past 20 years.

Basically it all depends on what you take as your average, they put in this insanely complicated bunch of stuff and then they say it is 4% or less, but there are tons of stuff that got 5%+ more expensive. I am not American so I do not care about that, but in my nation it is said that we have about 7% in inflation whereas I can tell you that it is more than 30% very easily, it is drastic here, we are living a horrible period and I do not know what is going to happen if we keep this up. Long story short the 4% is official number and we may not consider that as the truth, it is just what they tell us but it is really not that low.

Completely agree with this. I am residing in India, and there the pattern may be different to what you have in the United States. But from what I have noticed, there are a few things, which hardly went up in the last 10-15 years. I am talking about electronic appliances, textiles.etc. But then there are a few, which went up by 2x or more in the last 10 years, such as real estate prices, medical expenses.etc. It is very difficult to calculate the average, because we don't know how much weightage must be given to each commodity.

[teosanru]

This is the figure for April, yet still quite a figure to be dealt with for those who live on salaries, that tend to go after the inflation, and great news for those who have a mortgage or own money, since they are on the winning side for now - until interest rates catch up.

How is this going to affect bitcoin? If we make an analogy with commodities and particularly those used on the industrial processes, it will have a lift effect in price, sometimes much higher that what could normally be for other assets. I think is a good moment to stockpile bitcoin, copper... even tin, although is a bit expensive already.

Almost every country around the world has been hit so badly with inflation this time. India has shown a wholesale inflation rate of more than 12% and a retail inflation of more than 6%, I think capital appreciation is going to get much more difficult now as the interest rates are still quite low, Infact, even most of the Term Deposits are offering lower interest rates than the Inflation rate of the country this time. I think the only source of Investment left to protect your Capital from Inflation is just Stocks and Crypto. While Stocks too should be chosen in an intelligent manner. High Debt stocks can become riskier if Interest rates try to coincide as per Inflation Rates, High debt companies might not be able to Maintain Adequate ROE if this happens.

Most of the country now are suffering from a big inflation and that is expected considering the money that the government printed over the past months to fight this pandemic. Debt per capita are also rising and that can affect a country in long term if they are not able to address this problem. We are still on a pandemic though some countries are slowly going back to normal which is a good sign, we can still feel the effect of this pandemic in the next 2 - 5 years.

I think a huge crash could eventually come in the Economy due to the after-effects of the pandemic. It's because stock markets around the world haven't really discounted the pandemic and economic indicators. This is generally a short-term deviation and in the end, the market coincides to show the health of the economy. The huge money supply has so far been the reason that markets are stable. In developing countries, new retail investments have come into the markets which have kept the market intact until now, we will see a big crash in the next 3-4 years I think when the investors would eventually realize that all these attractive valuations couldn't realize themselves.

[The Sceptical Chymist]

I've been noticing prices of various items in the grocery stores going up, little by little.  Fast food and gasoline are getting more expensive as well.  I rarely eat fast food but did this week and was astounded at how much a typical burger goes for these days (dollar menu excluded, of course). 

So yeah, I tend to believe inflation was at 4% at least in April--and I'm expecting it to get much higher this year.  There's been too much stimulus money and, of course, too much money creation by the Fed for inflation to stay low.  The only thing I'm hoping for is that we don't see massive inflation (which happened in the 1970s) or, at the extreme, hyperinflation.  If the latter were to occur in the US, Canada, most countries in Europe, China, or other developed countries, the whole world could be in serious trouble.  A lot of members of the forum have been talking about that possibility for a long time, but I'm not sure if many of us would be prepared for it.

And as far as bitcoin is concerned in this context, it's looking a hell of a lot better than the USD and many of the other world fiat currencies.  I'd like to think that if hyperinflation struck, things would start to be priced in terms of bitcoin instead of fiat.  That would be every bitcoiner's wet dream, though I wouldn't want to see hyperinflation happen at all, no matter how much bitcoin would benefit.

[stompix]

Some are looking at those numbers and think the inflation was 4.% between two months but those numbers are compared to the previous year, so in a 12 month period the prices have gone up by 4.2% not from March to April.

If we go month to month:

Overall prices rose 0.8% from March—far higher than the 0.2% economists were expecting, while the core price index, which excludes volatile energy and food prices, rose 3% over the last year—nearly twice the 1.6% figure from March.

The trend continued in May but it's not that catastrophic as some people think.
https://www.bls.gov/news.release/cpi.nr0.htm

The Consumer Price Index for All Urban Consumers (CPI-U) increased 0.6 percent in May on a seasonally adjusted basis after rising 0.8 percent in April, the
U.S. Bureau of Labor Statistics reported today. Over the last 12 months, the all items index increased 5.0 percent before seasonal adjustment

A 5% increase each month would lave doubled all prices in a year and two months, that's happening neither in the US nor in Europe, and a lot of those increases are caused right now by exceeding demand and limited offer as the economy is still struggling to fill all the gaps in logistics and manufacturing the shut down left. We're paying the price for shutting economies, it's easy to stop something, far harder to start it again after you left it abandoned in a ditch for months.

[acquafredda]

In the end, fears about the persistence of inflation forced the hand of the Fed and the U.S. central bank, while reiterating that it will continue to purchase assets at a pace of $120 billion per month in the third quarter, announced that it might raise interest rates twice in 2023 instead of in 2024 or later, as promised in March. Bond purchases could also end sooner than said, as evidenced by the fact that the Fomc (the Fed's operating arm) has already begun discussing options for suspending purchases. This is why Tiffany Wilding, economist at Pimco, would not be surprised if the Fed announced the first tapering move as early as September.

What do you need to do to protect yourself?
Buy Bitcoin, of course.

[Lorence.xD]

I think that if the total inflation for these year is still below 4 or in 4 percent exactly, it doesn't matter what's going to be the rate per month. I think that there's nothing to worry about monthly inflation unless the percentage is on the 3 or higher digit territory.

[paxmao]

The trend continued in May but it's not that catastrophic as some people think.
https://www.bls.gov/news.release/cpi.nr0.htm

The Consumer Price Index for All Urban Consumers (CPI-U) increased 0.6 percent in May on a seasonally adjusted basis after rising 0.8 percent in April, the
U.S. Bureau of Labor Statistics reported today. Over the last 12 months, the all items index increased 5.0 percent before seasonal adjustment

A 5% increase each month would lave doubled all prices in a year and two months, that's happening neither in the US nor in Europe, and a lot of those increases are caused right now by exceeding demand and limited offer as the economy is still struggling to fill all the gaps in logistics and manufacturing the shut down left. We're paying the price for shutting economies, it's easy to stop something, far harder to start it again after you left it abandoned in a ditch for months.

I would not consider a 4% catastrophic in the current context. If you tell me a few years ago, this would be a signal of something going awfully wrong and a failure of the FED to meet the expectations, but after years of nearly zero inflation and the COVID, having a 4% may not be such a bad thing. As I have said in other posts, we do have to pay for the COVID crisis and that is going to be in the form of debt and the hidden tax that is really inflation.

I think that may people in debt will be happy about letting it go a little bit, just for a while so rates do not need to be raised, you know.

[bits4books]

Mad money printing may kill any currency, even USA

[wxa7115]

This is the figure for April, yet still quite a figure to be dealt with for those who live on salaries, that tend to go after the inflation, and great news for those who have a mortgage or own money, since they are on the winning side for now - until interest rates catch up.

How is this going to affect bitcoin? If we make an analogy with commodities and particularly those used on the industrial processes, it will have a lift effect in price, sometimes much higher that what could normally be for other assets. I think is a good moment to stockpile bitcoin, copper... even tin, although is a bit expensive already.

Inflation may not seem to be that bad but when you take the time to actually measure things up you can easily see the price of everything going up and we know what this means, when the price of everything goes up it means fiat is crashing and this is without a doubt good news for people like us.

This is a bullish sign for bitcoin as people will try to look for ways to protect their wealth and what can be better than an asset that is digital in nature, scarce and can be used to purchase all kind of products all over the world.