Both the UK and Canada reported June inflation today. Canada came in at a whopping 8.1 percent while the UK came in at a scorching 9.4 percent rate. We did a chart of the top three trading partners for the US: Canada, China and Mexico.
The data series for the US doesn’t appear to be correcting down and neither do the inflation rates for Mexico, Canada or China. But let’s take a look at all the US top trading partners.
The average inflation rate is shown in the red line and the numeric values are the average of all countries in the data set. It’s taken a full year to grow from 2.56% inflation in June of 2021 to get to 6.84% in June of 2022. We suspect it will take at least another full year to return to normal however our anecdotal research showed that inflation often takes 50 months on average to moderate back to “normal” levels.
We expect the costs of goods and services to continue to climb. Today, National Association of Realtors reported that housing sales were down 5.4 percent for June, however the median cost of housing in the US rose to $416,000.
We continue to invest in defensive and dividend value stocks and we’ve picked up shares of some new companies we’ll be writing about in an upcoming post. To take a look at our current portfolio, have a look at our July post.
In the meantime, stay tuned and stay solvent…