With the Fed already having begun to “stomp on the brakes,” inflation is still running very hot
As promised, here is my second post on the April CPI number.
The YoY advance in consumer prices, +8.3%, is down from last month’s 8.6%, which was the highest 12 month rate since 1981. As I suggested last month, “the spike in gas prices may be – to use a recently dreaded word – transitory,” since gas prices had declined 5% month over month at the time of last month’s report. In the April report, energy prices declined -2.7%, and since they are 8% of the total weighted, that was certainly helpful. So far this month they have been more or less steady.
There was also good news in that the price of used cars and trucks fell -0.4% in April, afterRead More »