Inflation is slowing, but don’t get too excited

Markets posted some massive numbers after yesterday’s inflation report: S&P 500 (+5.5%) and Nasdaq (+7.3%). NBD. Compared to the previous year: The Consumer Price Index (a measure of inflation) was up 7.7%. Core prices (excluding volatile food and energy) — increased 6.3% but were down from a 40-year high. The monthly increase was 0.4% (CPI)…

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What’s really driving inflation? Fed policies or greedflation?

There’s heavy debate on where inflation is coming from. Is it the massive increase in money supply, rising wage and input costs or greedflation? (Greed what? We’ll explain). They thought we wouldn’t notice… Typically, rising prices would lead to lower demand. But in recent years, product shortages have kept demand strong. This leads us to…

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Food prices are too damn high; here’s what can bring them down

Rising food costs have become one of consumers’ biggest headaches. For many, it’s turned into a full-blown crisis. In August, home food preparation costs and dining out prices were up 13.5% and 8% from last year, respectively. Some of the highest increases in food costs: eggs (39.8%), chicken (16.6%) and flour (23.3%). Why are food…

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August inflation data came in way worse than expected

Expectations: Inflation to come in much lower than the previous month — taking the S&P 500 to a better place. Reality: Inflation came in higher than expected in the August Consumer Price Index (CPI) report — sending markets lower yesterday. Here are the August numbers: CPI increased 8.3% from a year ago (8.5% in July,…

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Positive economic data gives investors reasons to be optimistic

After months of doom and gloom in the markets, investors have found reasons to be optimistic — sending the S&P 500 up 12% over the past month. Supply chains are getting better… Supply chain issues are a problem we’re all too familiar with. After nearly two years of non-stop surprises (i.e., COVID, Russia) — shipping…

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Good News: Inflation Expectations are Falling

Consumer inflation expectations have fallen for the second month in a row — per the latest Federal Reserve Bank of New York survey: In one year, consumers expect inflation to be 6.2% — down from the 6.8% expected the month before. In three years, consumers expect inflation to be 3.2% — down from the 3.6%…

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How much will the Fed raise rates in the next meeting?

Inflation came in higher than expected at 9.1% — compared to economists’ 8.8% forecast — the highest in over 40 years. What’s the big deal? For decades, the U.S. has been dealing with low inflation — trying to find ways to bring it higher. Remember, too little inflation and too much inflation is bad —…

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Inflation data raises the chances of a recession

Last Friday’s inflation report showed what no investor wanted to see — inflation picking up speed. “The headline numbers in this report are dreadful” — a sentiment shared among a panel of economists (Brookings). What’s the big deal? Recession fears are rising, and markets are now increasing the chances of a 0.75% interest rate increase…

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March CPI report show signs of peak inflation

The Consumer Price Index report released yesterday showed inflation’s highest levels since 1981. What’s the big deal? March was the first full month since the Ukraine invasion disrupted global supply chains — which sent commodity and food prices soaring. The war on Ukraine had a significant impact on gasoline prices which made up half the…

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Monthly horror show: Inflation numbers spooks investors

Inflation will haunt your portfolio for months to come. US Consumer prices jumped 0.9% in October (6.4% compared to Oct  2020) — the highest level in 30 years. What’s the big deal? For investors, inflation is one of the biggest things to fear. The longer high inflation lasts, the bigger its potential impact on markets….

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