It’s the one, two, three knock down punch! Punch 1, the BLS reported this week that the Consumer Price Index (CPI) is a whopping 8.2 percent year over year.
The Consumer Price Index for All Urban Consumers (CPI-U) increased 1.2 percent in March on a seasonally adjusted basis after rising 0.8 percent in February, the U.S. Bureau of Labor Statistics reported today. Over the last 12 months, the all items index increased 8.5 percent before seasonal adjustment. Increases in the indexes for gasoline, shelter, and food were the largest contributors to the seasonally adjusted all items increase. The gasoline index rose 18.3 percent in March and accounted for over half of the all items monthly increase; other energy component indexes also increased. The food index rose 1.0 percent and the food at home index rose 1.5 percent.
The pain doesn’t stop there, Punch 2. BLS reported the Producer Price Index (PPI)
The Producer Price Index for final demand increased 1.4 percent in March, seasonally adjusted, the U.S. Bureau of Labor Statistics reported today. This rise followed advances of 0.9 percent in February and 1.2 percent in January. (See table A.) On an unadjusted basis, final demand prices moved up 11.2 percent for the 12 months ended in March, the largest increase since 12-month data were first calculated in November 2010. In March, the rise in the index for final demand was led by a 2.3-percent advance in prices for final demand goods. The index for final demand services increased 0.9 percent. Prices for final demand less foods, energy, and trade services moved up 0.9 percent in March, the largest advance since rising 1.0 percent in January 2021. For the 12 months ended in March, the index for final demand less foods, energy, and trade services increased 7.0 percent.
And Punch 3. Inflation is out of control everywhere. We’re working on the global top trading partners inflation report and it’s not looking good.
In the meantime, we have been busy taking action (and not writing articles) because the pain will only get worse before it gets better. We are heavily investing in real estate opportunities, defensive stocks and buying more I-bonds now paying a whopping ~9 percent interest rate!
Stay tuned and stay solvent…