Over the last couple of days the BLS released CPI report and PPI report and both continue to be high. The CPI came in at a whopping 8.5 percent.
CONSUMER PRICE INDEX - JULY 2022 The Consumer Price Index for All Urban Consumers (CPI-U) was unchanged in July on a seasonally adjusted basis after rising 1.3 percent in June, 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. The gasoline index fell 7.7 percent in July and offset increases in the food and shelter indexes, resulting in the all items index being unchanged over the month. The energy index fell 4.6 percent over the month as the indexes for gasoline and natural gas declined, but the index for electricity increased. The food index continued to rise, increasing 1.1 percent over the month as the food at home index rose 1.3 percent.
The 8.5 percent inflation was a real whopper but the pain doesn’t stop there. On PPI:
PRODUCER PRICE INDEXES - JULY 2022 The Producer Price Index for final demand fell 0.5 percent in July, seasonally adjusted, the U.S. Bureau of Labor Statistics reported today. This decline followed advances of 1.0 percent in June and 0.8 percent in May. (See table A.) On an unadjusted basis, final demand prices moved up 9.8 percent for the 12 months ended in July. We think it's likely that CPI and PPI moderate a bit lower over the next month or two but with winter coming up and demand for energy about to explode, it's likely CPI and PPI will rise back to new highs in the winter. Higher inflation means our dividend portfolio stock will work well to help cover the higher costs of everything. In the meantime, stay tuned and stay solvent...