U.S. inflation rate in August stands at 8.3%, Peter Schiff says “the days of sub-2% inflation are over”

On September 13, the U.S. Bureau of Labor Statistics reported that the nation’s consumer price index (CPI) inflation jumped 8.3 percent in August. The reduction was less than expected and market analysts believe the Federal Reserve will continue its aggressive rate hikes going forward.

U.S. consumer prices rose 8.3 percent at an annual rate, according to the latest CPI report

CPI for all items rises 0.1% in August as shelter and food increase, gasoline falls https://t.co/dJyJeKlXDJ #CPI #BLSdata

– BLS-Labor Statistics (@BLS_gov) September 13, 2022

U.S. inflation figures for August are in, according to recent calculations by the U.S. Bureau of Labor Statistics. The Bureau of Labor Statistics wrote Tuesday that “the consumer price index for all urban consumers (CPI-U) rose 0.1 percent in August on a seasonally adjusted basis after remaining unchanged in July – Over the past 12 months, the all-items index has increased 8.3 percent before seasonal adjustment“.

CPI 8.3% pic.twitter.com/wY7iYm26ox

– Sven Henrich (@NorthmanTrader) September 13, 2022

Analysts did not expect the inflation rate to be as high as announced”economists expected prices to fall 0.1% in August for the month and slow to an annual rate of 8%.“Economist Peter Schiff was quick to criticize the U.S. dollar and U.S. fiscal policy. “Once again, the market reaction to much higher than expected inflation is wrong” said Schiff, who tweeted Tuesday. “Inflation is here to stay, and will get much worse despite rate hikes, due to over a decade of inflationary monetary and fiscal policy. This is very bearish for the dollar and bullish for gold” he added.

Once again the market’s reaction to much higher than expected #inflation is wrong. Inflation is here to stay, and will get much worse despite rate hikes, due to over a decade of inflationary monetary and fiscal policy. This is very bearish for the #dollar and bullish for #gold.

– Peter Schiff (@PeterSchiff) September 13, 2022

Amid a worse-than-expected inflation report, the four major Wall Street indices (NYSE, Nasdaq, Dow Jones, S&P 500) fell sharply after the Bureau of Labor Statistics report released Tuesday. All five precious metals (gold, silver, palladium, platinum, rhodium) recorded losses against the dollar over the past 24 hours, with gold losing 1.47%. After recording some gains the day before, the crypto economy lost 5.8% against the dollar on Tuesday as well. Over the past day, bitcoin has lost 6% of its value, while ethereum is down 8%.

Bankrate.com analyst says CPI is nowhere near the Fed’s 2% target, Peter Schiff says inflation rates below 2% are a thing of the past and will never return.

At the same time, Tuesday’s CPI data has investors believing the Fed will be aggressive when it raises the benchmark bank rate at the next meeting. Mark Hamrick, senior economic analyst at Bankrate.com, thinks the August inflation report will do little to convince the Fed to act dovishly next week. Hamrick expects the U.S. central bank to hold the federal discount rate until inflation subsides.

The days of sub 2% inflation are gone.There’s no going back to the anomaly experienced between the 2008 Financial Crisis and 2021. The #inflation chickens the #Fed released with QE have finally come home to roost. The price increases experienced thus far are just the beginning.

– Peter Schiff (@PeterSchiff) September 12, 2022

“They want to take their benchmark rate into restrictive territory and keep it there longer,“Hamrick analyzes. “Meanwhile what Chairman Jerome Powell said must be ‘convincing evidence that inflation is falling, consistent with a return of inflation to two percent’… We remain far from that destination.“Schiff thinks it’s absurd for people to expect 2 percent inflation to return, and he believes the days of sub-2 percent inflation will always be a distant memory. In a tweet published Monday, Schiff pointed out:

The days of sub-2% inflation are over. There is no return to the anomaly experienced between the 2008 financial crisis and 2021. The inflation chickens that the Fed unleashed with quantitative easing have finally turned against them. The price increases experienced so far are just the beginning.