Almost everyone will agree that making the right investments is one of the best ways to secure your financial future. Unfortunately, figuring out which investments are right for you is easier said than done and everyone knows only crazy people invest in gold, right? It's easy to assume that just putting all your money in a bank account is the safest thing to do. But with today's almost non-existent interest rates even low inflation could cause you to have a net loss in purchasing power over time. So obviously you need to find something that will provide a bit better return to counteract the effects of inflation. To do that, traditional wisdom tells you that you have to take on higher … [Read more...]
July Inflation Down for 3rd Consecutive Month
The U.S. Bureau of Labor Statistics (BLS) released their monthly inflation report for July on August 16th. According to the BLS Annual Inflation declined for the third consecutive month. Annual inflation was 1.13% in April, 1.02% in May, 1.01% in June and 0.84% in July. Not only did the rate of inflation fall but actual consumer prices declined as the CPI-U index declined from 241.038 to 240.647. Thus monthly inflation was -0.16%. For the year food at home was down -1.6%, energy was down -10.9%, used cars and trucks were down -3.7%, while overall transportation was down -4.9%. With all of these categories down one might wonder what actually caused the inflation rate to rise that meager … [Read more...]
May’s Low Inflation, the Price of Gold and More
The U.S. Bureau of Labor statistics released the May inflation data on June 16th. Annual inflation fell from 1.13% in April to 1.02% in May. The Consumer Price index crept up to 240.236 from 239.261. Monthly inflation was 0.41% (40% of the total annual inflation). The primary factor in the increase was energy costs, gasoline was up 2.3% while fuel oil was up 6.2%. Many other items were actually down... airfares down -1.5%, used cars and trucks down -1.3%, food at home down -0.5%, of course physicians services and motor vehicle insurance were up 1% and 0.9% respectively, along with apparel which was up 0.8%. Current Annual Inflation Chart We’ve updated the current annual inflation chart … [Read more...]
Inflation, Economy, and the US Election
One of the major factors affecting an election's outcome is the nation’s economy during the election year. In terms of trading and from an investment standpoint, financial security is a huge issue. But unlike recent election years, forecasters predict a strong economy in 2016 during the presidential race. Economic conditions can change however, depending on which candidate wins. With the US Presidential Election still a good six months away (November 8, 2016), how will it affect inflation and the economy as a whole? Low Unemployment Rate Researchers in political science, project that unemployment will be at its lowest, since the election in 2000 (Bush versus Gore) when it was at 3.9%. … [Read more...]
CPI Reaches All-Time High
BLS Releases April Inflation Data The U.S. Bureau of Labor Statistics (BLS) released the inflation data for the year ending in April on May 17th, 2016. The Annual Inflation Rate was 1.13% up from 0.85% last month. The Consumer Price Index (CPI-U) reached an all-time high of 239.261. Normally, this wouldn't be news since for years it made a new high almost every month. But after peaking at 238.316 last August (2015) the index fell to 236.525 by December and took 8 months (until April) to climb above August's level. Interestingly, in September 2014 the index was 238.031. So it has taken 19 months for overall prices to exceed the level first attained in September 2014. This doesn't … [Read more...]
BLS Releases March CPI and Inflation
The U.S. Bureau of Labor Statistics released the March CPI and inflation numbers on April 14th. Annual Inflation fell from 1.02% for the 12 months ending in February to 0.85% for the 12 months ending in March. Interestingly, prices rose 0.43% for the month of March alone, so monthly inflation in March was almost exactly half of the total inflation for the entire year. The Consumer Price Index (CPI-U) was 238.132 up from 237.111 in February 2016 and 236.119 for March 2015. According the BLS Commissioner's report, " The food index declined in March, while the indexes for energy and for all items less food and energy rose, leading to the slight seasonally adjusted increase in the all items … [Read more...]
Inflation Down 25% in February
The monthly inflation numbers were released by the Bureau of Labor Statistics on Wednesday March 16th for February. Annual inflation was 1.02% down from 1.37% in January for a loss of 25%. The Consumer Price Index was 237.111 up from 236.916 in January but this was still below the peak levels of July 2015 at 238.654 indicating that overall prices are still lower than July (primarily gasoline) although other prices may be higher. Overall energy was -12.5% lower than a year ago, while medical care services were 3.9% higher and Hospital services were 5.1% higher as was Motor Vehicle insurance. Fruits and vegetables were 3.8% higher and food away from home was 2.6% higher. Annual Inflation … [Read more...]
January Inflation Up Sharply Should You Worry?
The U.S Bureau of Labor Statistics released their monthly inflation report today covering the 12 months ending in January indicating a massive jump in inflation. Should you worry? Current inflation (CPI-U) nearly doubled from 0.73% to 1.37%. The Consumer Price Index was 236.916 up from 236.525 in December. According to the BLS, the rate of decline for Energy has slowed a bit last month. Energy was down -12.6% in January, but only down -6.5% over the previous 12 months in February. Gasoline is only down -7.3% this month compared to -19.7% last month, while Fuel Oil is down -28.7% compared with -31.4% in December. The only energy commodity that is down more than previously is … [Read more...]
The Devaluation Derby
The 1930's had massive deflation on a world-wide scale. Making it the worst deflationary event in living memory. This has affected the thinking and even the language of everyone from economists, to politicians, to the media, as new words like devaluation, disinflation, low inflation, even negative inflation are created to avoid having to say what they really mean and that is the big "D"... DEFLATION. But no matter how you say it, the fact is, deflationary forces are building around the world. During the first quarter of 2015 the U.S. saw slight deflation on an annual basis. And despite historically low interest rates and high economic stimulus, in September 2015 the Financial Times posted … [Read more...]
Inflation Picks Up in December
The U.S. Bureau of Labor Statistics (BLS) published their current inflation (CPI-U) report for the month of December on January 20th. The Consumer Price Index was 236.525 down from 237.336 in November. With the index going down you would think that we would have deflation but because when we say inflation or deflation we are talking about annual inflation/deflation we need to compare the index to the index from a year previous. Since the CPI-U for December 2014 was 234.812 and the current index is higher, we had annual inflation of 0.73%. According to the BLS, over the last 12 months Energy Prices have fallen -12.6%. Specifically, Gasoline is down -19.7%, Fuel Oil is down -31.4% and … [Read more...]
