With the current low levels of inflation in developed countries, most consumers and even small business owners are largely unaware and unconcerned with the issue of inflation and currency fluctuation. With most currencies more stable than ever in the 21st century, fears of wild inflation seem to be limited only to developing nations and the distant past. However, even small changes in a currencies value can have a ripple effect that causes massive changes in all businesses across the world. Oil the World Over The most readily apparent example of this is in the case of petroleum. For various historical and political reasons, all petroleum in the world today is traded on a dollar-per-barrel … [Read more...]
Annual Inflation Up Slightly in August
The U.S. Bureau of Labor Statistics (BLS) released their monthly inflation report for August on September 16th. According to the BLS Annual Inflation rose from 0.84% in July to 1.06% in August bringing inflation back in line with the levels in April through June. Inflation was 1.13% in April, 1.02% in May, and 1.01% in June. However, the rise was not due to high monthly inflation. Monthly inflation was only 0.09% for August 2016. Rather annual inflation rose because August 2015's -0.14% fell out of the equation. Interestingly, if last month's monthly inflation of -0.16% .was swapped with this month's 0.09% the Annual Inflation rate would have been much more stable. The rate would look … [Read more...]
Choosing the Right Investment: Gold vs. U.S. Dollar vs. Bitcoin
Rosland Capital recently produced an interesting infographic comparing the ten most important traits of an investment or more precisely of a store of value or currency. They offer physical gold and precious metals backed IRAs as a method to add stability to the mix. Including gold and other precious metals in your portfolio lowers your risk by diversifying from paper assets, thus hedging against the economy and inflation. The infographic compares Gold, the U.S. Dollar and Bitcoin showing how each ranks for these 10 characteristics on a scale of "High", "Moderate" or "Low". The ten important traits are: Scarcity- Being in short supply or rare. This is important because in order … [Read more...]
Should You Invest in Gold?
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...]
