Peter Schiff Blasts Misinterpretation Of Recent Core CPI Data: 'Soaring Public And Private Debt Means Higher Inflation' To Come

Well-known economist Peter Schiff has challenged the interpretation of recent core CPI data, stating that it does not reflect the real inflation situation, which he believes is linked to the surge in public and private debt.

What Happened: On Tuesday, Schiff took to Twitter to air his views on the recently released core CPI data. He argued that those claiming this data as evidence of inflation nearing the Federal Reserve’s 2% target don’t understand the real concept of inflation.

Schiff links inflation to the excessive demand created by an increase in the supply of money and credit. Soaring public and private debts, according to him, will push inflation higher.

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In September Schiff had, Schiff had opined that the Federal Reserve might have “secretly given up its 2% inflation target.” He also cautioned investors against seeking refuge in money markets due to the hidden inflation risk, as reported in a Benzinga article .

Why It Matters: Inflation has been a pressing issue in the U.S., forcing both the government and the Federal Reserve to take measures. Despite these actions, Schiff insists that inflation will worsen, as mentioned in a Benzinga report.

The August CPI data, which came in hotter than anticipated, has raised concerns about the Federal Reserve's future actions, as per Benzinga.

Schiff’s latest comments further stoke these concerns, suggesting a more complex picture of inflation than what the core CPI data might suggest.

Photo Courtesy: Wikimedia Commons

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