Rough seas ahead! The BLS released the May inflation report and it was a scary 8.6 percent! Let’s take a look at the statement.
The Consumer Price Index for All Urban Consumers (CPI-U) increased 1.0 percent in May on a seasonally adjusted basis after rising 0.3 percent in April, the U.S. Bureau of Labor Statistics reported today. Over the last 12 months, the all items index increased 8.6 percent before
seasonal adjustment.
The BLS also provided a handy chart.
Energy was the key driver of inflation with fuel oil up a whopping 16.9 percent. Food is up 1 percent as well and given the global geo-political situation, we expect food to continue to climb higher over the next year.
What can anyone do about all of this? The only two answers are reduce consumption or increase income. We’ve been positioning to do the latter by investing in value dividend stocks and real estate rental properties. We continue to look for opportunities in this market but are cautious given the Federal Reserve is expected to raise rates next week.
Stay tuned and stay solvent…