by Karl Denninger
Market-Ticker.org
… cause we sure got it on the inflation figure.
The Consumer Price Index for All Urban Consumers (CPI-U) increased 0.4 percent in March on a seasonally adjusted basis, the same increase as in February, the U.S. Bureau of Labor Statistics reported today. Over the last 12 months, the all items index increased 3.5 percent before seasonal adjustment.
The index for shelter rose in March, as did the index for gasoline. Combined, these two indexes contributed over half of the monthly increase in the index for all items. The energy index rose 1.1 percent over the month. The food index rose 0.1 percent in March. The food at home index was unchanged, while the food away from home index rose 0.3 percent over the month.
Core, all items less food and energy, was also up 0.4, which annualizes to 4.91%.
Forget about rate cuts folks; I told you there was another impulse in the PPI and other data and here it is.
As we approach what is likely to be the most chaotic presidential election in U.S. history, trouble signs are starting to erupt for the U.S. economy. In fact, CNN is actually admitting that “the long-predicted storm clouds in the economy may actually be forming”. I can’t remember the last time that I saw a CNN article with a headline like that. But at this point, it is becoming extremely difficult for the mainstream media to avoid the truth. Inflation is getting worse at the same time that many key sectors of our economy are slowing down. If you thought that the last couple of years were rough for the economy, just wait until you see what is coming next. Tremendous turmoil is on the horizon, and the American people are becoming increasingly emotional about our rapidly growing economic problems.
Hotter-than-expected inflation data Wednesday threw cold water on investors’ hopes that the Federal Reserve would begin cutting interest rates as early as June – sending the markets plunging.
Ugly inflation in services drives up the 3-month “core CPI” for 7th month, to 4.5% annualized, worst in a year, and the 3-month overall CPI to worst since Nov 2022.
Consumer prices in the US rose faster than expected last month, in a sign that the fight to slow inflation has stalled.
Inflation remains the stickiest of problems for the U.S. economy, with the March consumer price index coming in hotter than expected — the third straight month that prices have accelerated. Gasoline prices and rent contributed over half the monthly increase, the government said on Wednesday.
Investing.com — Now is the time to lean into commodities, particularly energy, to hedge the risk that a faster pace inflation may return, driven by economic growth that is running above trend, JPMorgan said.
A closely watched Labor Department report due Wednesday is expected to show that not much progress is being made in the battle to bring down inflation.