⚾There was a time, not long ago, when no one paid much attention to inflation data. It was boring...the financial equivalent of a five-hour MLB playoff game featuring all twenty-six rostered pitchers. That time is not now, thanks to monetary stimulus that has yet to work its way through the economy. Also, MLB game times are down significantly thanks to a host of rule changes before opening day. But make no mistake about it...as the World Series looms, inflation is back to playing hardball.
💰The Consumer Price Index (CPI) Rose 0.4% in September. Meanwhile, The Producer Price Index (PPI) Rose 0.5% in September. Consumer prices exceeded the consensus expectation, while the twelve-month comparison held steady at 3.7%. Not great, but not awful either. Producer prices, up 2.2% year-over-year, have fallen considerably since the 11.7% peak in March 2022. But wait for it because the curve ball is coming, and the Federal Reserve’s fight against inflation will require extra innings. The Fed is flailing because inflation has made a call to the bullpen and is throwing harder of late, with consumer prices up 4.9% and producer prices up 7.7%, at an annualized rate in the last three months. Play ball! 🏟
Patrick Huey is a small business owner and the author of two books on history and finance as well as the highly-rated recently-released fictional work Hell: A Novel. As owner of Victory Independent Planning, LLC, Patrick works with families and non-profit organizations. He is a CERTIFIED FINANCIAL PLANNER™ professional, Chartered Advisor in Philanthropy® and an Accredited Tax Preparer. He earned a Bachelor’s degree in History from the University of Pittsburgh, and a Master of Business Administration from Arizona State University.