Bond markets rallied unexpectedly following the CPI release, while disclosure season heats up with pivotal insights into inflation, banking trends, and shifting global confidence in the dollar and gold.
by Dave Fairtex
Chris Martenson’s Peak Prosperity
Consumer Economy
Retail Sales (RSAFS); $729B +3.3B (+0.45% m/m)
Industrial Production (INDPRO); +0.91% m/m
Producer Prices (PPIACO); +0.16% m/m
CPI All Urban (CPIAUCSL); +0.39% m/m
Retail Sales made a new all-time high, and it may be keeping up with inflation. Industrial production jumped higher – but it is not at a new all-time high. Still, the move is a positive sign, and not recessionary.
Producer prices (the old index, not the new one) didn’t change much. PPI is linked closely to energy.
Lastly, CPI rose 0.39%; annualized, that’s 4.68%. Since all the bureaucrats do is lie, this is an incredibly inflationary signal. Perhaps instead we should focus on “core CPI” (which removes the “useless” food & energy components – who needs them?), which rose just 0.23% this month, or 2.7% annualized.
Wolf’s take here: