Rising Inflation in the US Puts Basic Necessities Out of Reach for Many

Focus on the cost of what it takes to live

Inflation has become a pressing concern in the United States as the Consumer Price Index (CPI) decline to of 4.0% below expectation of 4.1% , marking the first time in two years that inflation has reached this level. Despite the overall inflation rate, key essential goods and services, such as shelter, food, and rent, are experiencing even higher inflation rates, making them increasingly unaffordable for a large portion of the population.

1. Shelter Inflation: 8.0%

2. Food Inflation: 6.7%

3. New Vehicles Inflation: Hitting 4.7%

4. Rent Inflation: 8.7%

Conclusion:

While the overall inflation rate of 4.0% has garnered attention, the stark reality is that basic necessities are experiencing higher rates of inflation in the United States. Shelter, food, rent, and new vehicles have become increasingly unaffordable, making it challenging for many individuals and families to meet their essential needs.

Fed Rate Futures Indicate a 100% Pause on Wednesday. Yet a 65% chance of a 25 bps in July.

Consider that if they pause or “skip” its not necessarily a good thing. If they where to cut, then its really not a good thing.

Conclusion

The fundamentals are great…actually as credit tightens basic needs are still expensive, eventually all of the economic news will catchup with markets. Take in account that that Large and Small speculators are backing off their shorts after this sizeable short squeeze over the last month or so. Once the shorts are out of the market, their is not much of a floor to support the markets going up. Case and point is Nvidia. Sideways trading going on over two seeks now. Don’t get caught up in the FOMO.

Pay Subscribers: had to take my daughter and her friends to the airport early this morning for their trip to Spain. Sorry for not sending out an update. I’ll work on it this morning an get it out to you. Thank you for your patience.

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