>> COMPANIES NEED TO PROTECT
THEMSELVES IN AN ATTACK.
SOMETIMES IF THEYRE ATTACKED,
THE ONLY WAY FOR THEM TO GET OUT
OF THIS SITUATION IS BY PAYING
THE RANSOM.
>>> THE U.S. LABOR DEPARTMENT
HAS RELEASED NEW INFLATION
NUMBERS.
THE CONSUMER PRICE INDEX ROSE 5%
IN MAY OVER ITS LEVEL A YEAR
AGO.
JOINING US NOW, STEPHANIE RUHL.
STEPHANIE, EXPLAIN THE NUMBER.
WHAT DOES IT MEAN?
>> OKAY.
THIS IS A VERY BIG INFLATION
NUMBER.
5% FROM LAST YEAR.
WE HAVENT SEEN AN INCREASE LIKE
THAT SINCE 2008.
PEOPLE GET PANICKY WHEN THEY
HEAR SOMETHING LIKE THIS.
HOWEVER, THE THING WE HAVE TO
REMEMBER, MIKA, IS NOT TO LOOK
AT THIS IN A VAX UM.
REMEMBER WHERE WE WERE LAST
YEAR.
DEMAND FOR EVERYTHING WAS
ESSENTIALLY PLUMMETING.
SO WE NEED TO LOOK AT THIS IN
TERMS OF WHERE WE WERE TWO YEARS
AGO, THREE YEARS AGO.
AND WHEN YOU DO THAT, ITS FAR
MORE NORMALIZED.
SO THE BIG QUESTION IS, WERE
FACING THESE ISSUES.
ARE THEY TRANSITORY, WILL THEY
WORK THEMSELVES OVER TIME?
THE MARKETS ARE SHRUGGING THIS
OFF SAYING LISTEN, ITS NOT THAT
BIG ON OF A DEAL.
HOWEVER, GO TO THE GROCERY
STORE.
TALK TO A FRIEND.
TALK TO YOUR MOM.
PEOPLE DONT THINK ABOUT WHAT
THEY PAID FOR GAS TWO YEARS AGO.
THEY THINK ABOUT WHAT THEY PAID
FOR GAS LAST WEEK AND LAST MONTH
AND PEOPLE FEEL THESE PRICES
GETTING HIGHER AND ITS PUTTING
A LOT OF STRESS ON THE AMERICAN
PEOPLE.
>> WHEN I DO GO TO THE GROCERY
STORES, YOU SEE PEOPLE CHECKING
THE COST OF THE BREAD, THE MILK,
THE EGGS THAT THEYRE BUYING.
WHAT IS THE LARGER ISSUE, IS IT A SLIGHT SPIKE IN INFLATION?
A SLIGHT SPIKE IN INFLATION?
IS IT ST SUPPLY CHAIN FACTOR?
>> THAT IS SORT OF THE CHICKEN
OR THE EGG THING HERE, RIGHT?
THERE IS A SUPPLY CHAIN ISSUE
BECAUSE OF THE PANDEMIC, BECAUSE
OF WHAT WEVE GONE THROUGH NAT
LAST YEAR.
THEN YOU OPEN THE ECONOMY UP AT
THE SAME TIME AND NOW THAT
GROCERY STORE THAT YOURE GOING
TO, SUDDENLY YOU HAVE
RESTAURANTS MAKING COMMERCIAL
ORDERS FOR ALL OF THOSE SAME
THINGS.
SO MANY ECONOMISTS BELIEVE FOR
THE NEXT FEW MONTHS, YOURE
GOING TO SEE THIS LOGJAM.
BUT IT WILL WORK ITSELF OUT A
FEW MONTHS FROM NOW.
BUT YOU KNOW WHILE YOURE IN THE
GROCERY STORE AND THAT WEEKLY
BILL THAT USED TO BY $90 AND NOW
ITS $130, THAT MAKES YOU VERY
WORRIED.
AND IT MAKES A LOT OF PEOPLE SAY
I DONT FEEL GOOD ABOUT THE
ECONOMY OR IM NOT GOING ON BE
ABLE TO AFFORD THINGS FOR MUCH
LONGER.
>> SO IM SEEING A LABOR
SHORTAGE WHEREVER I TURN WITH
PEOPLE WHO CANNOT FIND WORKERS
TO FILL THE JOBS THEY HAVE,
WHICH ADDS TO THIS PROBLEM.
KATTY KAY, TAKE IT TO A GLOBAL
PERSPECTIVE AND WHAT YOURE
HEARING.
>> ITS TRUE THAT THESE PRICE
RISES ARE NOT JUST IN THE
STATES.
WERE SEEING INFLATION CREEPING
IN AROUND THE WORLD, EVEN IN KIND OF ENERGY AND IN OIL
KIND OF ENERGY AND IN OIL
PRICES.
WHERE DOES THIS LEAVE THEM?
WHAT ARE THE WEAPONS THEY STILL
HAVE, THE TOOLS IN THE TOOLBOX?
>> ITS DEFINITELY PUTTING
PRESSURE ON THE WHITE HOUSE.
WHEN YOU THINK ABOUT THE FEDERAL
RESERVE, WHO FOCUSES ON THE FED?
MARKETS.
AND THE TRUTH IS, MARKETS AT
THIS POINT, SINCE THE FINANCIAL
CRISIS ARE SO ADDICTED TO
FEDERAL SUPPORT AND THE FED HAS
LED US TO BELIEVE THEYRE GOING
TO BE HERE WITH THIS SAFETY NET
TO CARRY US THROUGH.
THEYVE BEEN DOING IT SINCE
2008.
WHAT THIS IS DOING, THOUGH, TO
GOVERNORS ACROSS STATES, WEVE
ALREADY SEEN IT IN 22 STATES,
REPUBLICAN-LED STATES.
BUT YOURE LIKELY TO SEE MORE
PRESSURE ON DEMOCRATIC GOVERNORS
TO START PULLING THAT EXPANDED
UNEMPLOYMENT.
NOT BECAUSE THEYRE LOOKING TO
PUNISH ANYONE.
YOU CAN LOOK AT THIS, MIKA, AS A
WIN.
WE BEAT COVID FASTER THAN WE
THOUGHT WE COULD, SO THAT EXTRA
$300, WHILE IT WAS MASSIVELY
NEEDED A FEW MONTHS AGO, WE
MIGHT NOT NEED IT.
WE CERTAINLY NEED IT IN OTHER
PARTS OF THE ECONOMY.
SO THE CHANCE -- THERE IS A
CHANCE YOU SEE MORE GOVERNORS
SAY WERE GOING TO PULL THAT AND
REDEPLOY THAT KIND OF MONEY TO
PLACES WHERE ITS NEEDED MORE.
YOURE ACTUALLY STARTING TO SEE
THAT HINTING OUT OF THE WHITE
HOUSE.
>> STEPHANIE RUHLE, THANK YOU