Investing and finance thread

[MightyGiants]

Nope. Pretty disappointing to see the core inflation number getting worse like this. Market was obviously expecting better. Agree today is likely to be quite ugly, but if there is any relative positive here it's the fact that, market expectations aside, the headline CPI number (8.3 in today's release) has now been lower than the previous month in two consecutive months. That has not been the case to this point.

I think what makes it more shocking is that we have been seeing some prices (gas in particular) drop in price.  It was jarring to see things still going up. 

Still, the markets are not reacting directly to the inflation as much as knowing the feds will continue to be aggressive in their rate hikes.

[DaveBrown74]

I think what makes it more shocking is that we have been seeing some prices (gas in particular) drop in price.  It was jarring to see things still going up. 

Still, the markets are not reacting directly to the inflation as much as knowing the feds will continue to be aggressive in their rate hikes.

Since the headline number incorporates food and energy, it was not surprising to see that number come down a bit. It didn't come down as much as hoped, but it was still lower than last month (for the second time in a row).

The bigger problem today was that the core number (ex food and energy) is significantly worse than last month. And the Fed cares more about that than they do the overall number. I think people have been hoping that the lower energy/gas prices would trickle into the rest of inflation, but they have not, at least not yet.

[MightyGiants]

Since the headline number incorporates food and energy, it was not surprising to see that number come down a bit. It didn't come down as much as hoped, but it was still lower than last month (for the second time in a row).

The bigger problem today was that the core number (ex food and energy) is significantly worse than last month. And the Fed cares more about that than they do the overall number. I think people have been hoping that the lower energy/gas prices would trickle into the rest of inflation, but they have not, at least not yet.

In my opinion, fuel was the big driver of inflation, with labor costs being an additional kicker.   I figure that there is a lag in terms of fuel costs driving up prices, and there will be a lag going the other way as well.  Labor costs seem to be the bigger challenge.  Even with a slowdown in job creation, there isn't a major bump in people looking for work.   Add in people wanting raises anticipating inflation and things are going to be tough on that front.

[MightyGiants]

Another driver of inflation is healthcare and insurance.   A lot of medical people were burnt out by Covid and retired or left the field.   There is rising cost due to the cost to hire new staff