We live in a global economy so inflation in another country will result, at some level, inflation back in the United States. The shocker this week was the Bank of England raising interest rates by 0.5 percent because their inflation number came in red hot at 8.7 percent. Let’s take a look at the chart.
The average composite inflation rate for US top trading partners is around 5 percent (Japan not included in chart).
Let’s take a look at the top 3 trading partners: Canada, China, Mexico.
The average inflation rate for the top 3 US trading partners is 4.75 percent and not that much different than the global average.
We continue to invest in short term T-bills currently paying above 5 percent interest and are now looking at municipal bonds to earn tax free interest in our investments so stay tuned, stay profitable and stay solvent…