Inflation Is Not Back!
It has become the new economic thing for everyone to hold their breath right before the next inflation report is released. Of course, like many things’ investors worry about today, most of it is just made-up hype.
Yes, each month offers a little up, down or sideways, yet the fact-based and source-cited data does not support the inflation is back bologna.
In the chart below from scottgrannis.blogspot.com based on BEA data you will see the current inflation rate is about the same as it has been for the last twenty years!
This chart is the six-month annualized inflation rate of growth for both the personal consumption expenditures (PCE) and the core PCE. Both are right at the Federal Reserves target inflation rate of 2%.
Remember, the PCE is the Feds pricing tool for measuring inflation versus what most people think is the Consumer Price Index (CPI).
It is just a matter of time before the business news lets this monster go and finds a new one to SCARE us enough to watch, listen and read their story long enough for them to sell us whatever they are selling. Which, of course, TWSG family knows not to do! 😊
I am interested in your thoughts, comments, and observations. Feel welcome to call, email, or stop by the office and say Hi.
Respectfully,
James O. Lunney, CFP®
CERTIFIED FINANCIAL PLANNER™ Professional
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