CPI Report Out; Things Tempered Slightly But Still Elevated
What does this all mean?
Many feel the path is only up. However, as we know everything turns around at some point. The same will be true for the price increases.
In this video we delve into the latest CPI report to see how things are looking. It is still awful out there yet some signs of cracking are taking place. Remember, inflation is a trailing indicator. Also, we detail how things do not go from inflationary to deflationary. There is a process and places we can monitor to see how things are going.
Here is the report:
https://www.bls.gov/news.release/pdf/cpi.pdf
▶️ 3Speak
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We will eventually go up again, that’s a certainty, I am very sad fog the people affected, but we have to look forward on this blockchain!
Inflation is a key factor for which the world economies suffer a lot. I thought that only countries like Venezuela suffer, but I see that it is a problem that we must try to find a solution for, since it ruins almost everything in its path.
The headlines are highlighting the fact that we didn't make a new all time high. So I think that pretty much shows how bad things are. I haven't been looking at used car prices though but I think it's probably because there is less discretionary money.
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Summary:
In this video, the speaker discusses the recently released BLS report on inflation, particularly focusing on the Consumer Price Index (CPI). The speaker highlights that while inflation eased slightly year over year, it still exceeded expectations. He emphasizes the concept of transitory inflation as viewed by the Fed, clarifying that transitory does not mean it will resolve in the next 90 days. The speaker delves into specific components of the CPI report, such as energy and used car prices, to provide insights into different market trends. Additionally, he touches on the apparel industry and the impact of discretionary spending on inflation. The speaker suggests that looking at leading indicators like oil sentiment and durable goods is more crucial than trailing indicators like inflation numbers in predicting future trends.
Detailed Article:
The video opens with Task discussing the recently released BLS report on inflation, focusing on the CPI. He notes that while inflation has eased slightly year over year, it still came in higher than expected at 8.3% as opposed to the anticipated 8.1%. Task highlights that although this data may seem alarming, it is crucial not to base significant predictions on a single report, emphasizing the transitory nature of inflation as stated by the Fed.
Task delves into specific components of the CPI report, starting with energy prices. He cautions against reading too much into the current decrease in energy prices, citing the volatility of the energy market. He stresses the need for sustained trends over several months to indicate significant market shifts accurately.
The speaker then shifts the focus to used car prices, pointing out that they have seen a decrease for three consecutive months. Task attributes this trend to the supply chain shortage of semiconductors impacting the production of new cars, leading consumers to opt for used cars. He suggests that this shift in consumer behavior may be influenced by various factors like the availability of inventory and discretionary spending.
Task also touches on the apparel industry, noting a recent decline in price levels. He explains that as apparel is a discretionary purchase, its market behavior can provide insights into inflationary or deflationary trends. He stresses the importance of analyzing leading indicators like oil sentiment and durable goods to better predict future market movements, as opposed to relying solely on trailing indicators like inflation numbers.
In conclusion, Task highlights the significance of collaterally short deflationary money in the global financial landscape and its potential impact on the overall economy. He encourages viewers to stay vigilant and observant of changing market dynamics.