TL; DR Breakdown
- Inflation will continue rising in the U.S.
- Stimulus spending is blamed for the increasing inflation rate.
- Truflation is a new decentralized tool developed to provide accurate reports on US inflation rate.
Americans are currently debating the increasing inflation that keeps affecting the cost of living and commodity prices in the country. Senator Rand Paul says they still have a long way to go, and things will likely worsen. In his report, the senator blamed Congress for spending too much on stimulus relief, and although it’s already been established that inflation is rising in the United States, a new decentralized tool Truflation, suggests the data are underreported.
Inflation: report blames excessive stimulus spending
The general prices of commodities drastically increased amid the coronavirus pandemic. According to the Labor Department, the latest inflation data shows the highest inflation rate (7%) in 40 years. The consumer price index rose by 0.5% since December, the most significant increase in a single month since the pandemic began.
CPI is calculated by measuring a basket of commodities that people living in urban areas pay. Rising inflation results in increased commodity prices and higher living costs, hurting ordinary people, particularly the low-income earners. The Democrat party is worried that rising inflation will negatively impact the prospect of the current leadership.
The increasing CPI rate has sparked debates among stakeholders, including market analysts, the media, bankers, politicians, and much more. Senator Rand has also published The Hidden Tax, detailing how inflation will affect American families and startup businesses.
Some of the consequences of inflation include:
- Eroding the ability to purchase.
- Promotes spending and investing.
- Inflation promotes borrowing.
- Inflation results in decreased interest rates.
Truflation oracle to revolutionize inflation reporting
Some economists, like Peter Schiff, said that the official CPI was cooked using inflation statistics sourced from shadowstats.com. He believes that the actual inflation rate is 15% and not 7%, as indicated by the government. Patrick Batelink, a famous Chainlink proponent, tweeted that Truflation has a better approach to calculating CPI. He further noted that Truflation uses real-time data for better results.
Earlier in January, Truflation’s official Twitter account highlighted the massive difference between the government’s CPI and theirs, 7% and 11.4%, respectively. Truflation leverages Chainlink and smart contracts for increased efficiency, and its documentation teaches users the best way of utilizing the index. As per their website, governments use outdated inflation calculation methodologies, duping the citizens.
Inflation vs. cryptocurrency
Cryptocurrency enthusiasts and experts advise that crypto is the best hedge for inflation. Kevin O’Leary, Shark Tank star, said that Cryptocurrency is the only thing that can beat inflation. In 2017, he likened Bitcoin to garbage, although it now constitutes the largest share of his portfolio.