CPI report


The Bureau of Labor Statistics’ May Consumer Price Index (CPI) reflected a year-over-year increase of 8.6% last month, up from April’s print. Consensus economists were expecting an 8.3% increase in May, according to estimates compiled by Bloomberg.

On a monthly basis, the broadest measure of inflation rose at a pace of 1.0%, compared to 0.3% in April.



Yep the FED is going to escalate in all likelihood.

Yep the FED is going to escalate in all likelihood.

Probably. But the fed raising rates won’t magically make more chips appear. Or make more gasoline appear. At best, they can cause a recession to tamp down demand for a while. But they won’t want to cause a deep enough recession to cut demand enough to bring balance to supply/demand. Not to mention that, certainly for commodities, the rest of the world also counts, and with China coming back online, their demand is likely to increase for a while (at least until their property sector blows up causing their own deep recession).



Totally in agreement on what you are saying.

I will reiterate we need wise fiscal policies or we go nowhere.

I get the supply side mantra is against government. If heads are held down firmly in the sand we go nowhere.

Everyone’s investments and income shrink rapidly to inflation.

We can only play dumb for so long.