The post-Covid fiscal deficit reduction continues to take its toll:

Higher prices automatically result in a spike in tax receipts:

Higher prices, now largely from energy prices pushing up costs, reduce the inflation adjusted value of the public debt, which acts like a tax on the economy:

CPI index for all consumers


With the rate of CPI increase above the rate of deficit spending, the effect is that of a budget surplus:


Spiking energy prices as Saudis set prices ever higher shift $ from consumers with high propensities to spend to producers with low propensities to spend, and this won’t end until demand collapses: