Hello, I’m Stewart Heath, CEO of Harvard Grace. Today I’m bringing to you another article about inflation. You know, last week we had a 39-year high in our inflation. I’m referencing an article in the wall street journal from this morning. We were up 6.8% of this past November over November of last year. That is pricing consumer price index of November 2021 over in November 2020 core inflation, which excludes food and energy prices. Which they are up 4.9% a year over year. That is an increase over the October raise of 4.6%. And it’s still surging. We’ve not yet seen the end of this in vehicles, which it’s a large part of the economy that was up 11.1%.
What is interesting about this is not like a lot of other recoveries that we’ve seen. We have very high consumer demand along with labor force and labor force shortages. What’s driving this? That was what led the fed to use the word transitory when it talks about this inflation, although they dropped that word last week, they’re no longer calling this transitory. I think that’s because when businesses are having to make wage increases to get people to come to work, you’re never going to give those back. We don’t know when the end of this is, but I do have a feeling that it will at least slow down, if not reverse a bit. But increased labor prices are here to stay and that may not be a terrible thing.
Take a look at this article. If you happen to be including inflation in your planning, from my CFO practice, I’m seeing that it is impacting every cost sector that all my client businesses are dealing with. You need to be addressing that in your business as well.
Let me know if we can help, if you do not agree with me, please let us know. Until next time! Lets connect!