by David Haggith
GoldSeek
The two major factors that gave a tiny drop in CPI last week were oil and softening housing price increases, removing earlier pressure. Apart from the decline/softening in those two items, CPI would have risen. Since those were the major items where softening or downward pressures helped the Fed out and gave stock and bond markets a tingle in the seat of their pants, I’m going to lay out what is coming in those prices, and it is not likely good for the Fed’s fight.
Getting crude about CPI
Oil, I’ve been saying, is more likely to rise right away, as the summer travel season gets going, than to keep falling. That is elementary because rises in price during the northern hemisphere’s summer is oil’s common pattern because travel in the summer by jet and by car and by RV and by ship all increase in the nations with the largest populations on earth and the most travelers.