C'mon dude. I can't comment on your geo; what goat-fucked, thatched roof economy and system you're running but in the first world a PPI at 12% annualized due to Hawley Smoot is a bad thing. He should be raising rates.
It’s really doesn’t matter how you figured out inflation %%. It’s one reason why inflation started and great developed - what was the reason and what is main factor for it to stay steady. And second, what to do to stop it. I do not f..g care about this percentage. What to do to stop it. One of these steps what I mentioned. Increasing %% will kill economy, lol.
Stop it? Lowerrrr rates, ofc! I dunno? Don't solve an imaginary problem (trade def) with an arbitrary VAT when the economy is tanking?
I apologize for the goat/ thatched roof comments. That was shitty and unacceptable. To move on. Trade deficits are a red herring. It's a manifestation of a developed economy. What is Switzerland's per capita trade deficit with China? I guarantee it's higher than ours. The only ways to shrink a TD: 1) shrink your economy at a faster rate basis FX (China as denominator). 2) tariff your trade parters which is a regressive VAT that fucks everyone. 3) in roughly peer economy you could run -nominal rates. Tariffs gave us 1% MoM PPI. Economy slowing. Boost RE? That's what we need. My area has seen homes appreciate by 100% since 2017.
100 points to improve housing??????????? Last i checked the housing market was doing quite well, you kinda make it sound like the housing market is in a downward spiral... There is zero reason to cut 100 basis points especially to create higher prices in an already over inflated housing market. Im seeing absolute garbage on the market for $ 1 million these days...
Your area and every nook and cranny of this housing market. Not only are they up 100% but damn to heat, cool, pay taxes, pay for a plumber to fix your drain or a new stove or refrigerator and even a gallon of paint is disgustingly high.......my friend showed me his electric gas bill last months $600 dollars....dude is fu*king paying nearly $8,000 a year to cool and heat his house, we aren't talking anything big either. A simple modest house. And prices are set to move even higher in 2026.....they already announced double digit increases for gas and electric...let me repeat. DOUBLE digit increases........
For those higher prices we have so many reasons and they were initiated by COVID for some reasons too. We have consistent housing crisis: 1) lack of new houses leading to a chronic housing shortage. 2) existing homeowners reluctant to sell heaving low-interest home mortgages. 3) resistance to new development. 4) it is a regional variance. Reduce mortgage interest will improve 1-3 factors of housing resistance.