July 13, 2023
STOP THE FED BEFORE IT KILLS AGAIN:
Prices Cool. Sentiment Warms. (Fisher Investments Editorial Staff, 7/12/2023, Fisher Investments)
US Consumer Price Index (CPI) inflation slowed again in June, and a strange thing happened: People actually noticed. Headlines heralded the deceleration to 3.0% y/y, in line with the long-term average inflation rate.[i] Pundits also cheered core CPI's slowing from 5.3% y/y to 4.8% and--refreshingly--explained correctly that this figure is skewed higher by shelter costs, which hit CPI at a lag and, in the case of owner's equivalent rent, are mostly imaginary.[ii] Excluding food, energy and shelter, the inflation rate is all the way down to 2.7% y/y.
Posted by Orrin Judd at July 13, 2023 6:24 AM