United States, inflation reaches 5%! – EconomyMorning



We continue to monitor inflation and it continues, as expected, to rise. According to the latest data, “US consumer prices rose more than expected in May, which could fuel fears of accelerating inflation that could lead to premature monetary tightening. Labor Department published Thursday, the “Core CPI” price index, which measures the evolution of prices excluding food and energy, came out up 0.7% last month compared to April and 3.8% over one year. Economists polled by Reuters had forecast an increase of 0.4% on the month and 3.4% over one year. A broader measure of inflation known as CPI gives an increase of 0.6% on one month in May, after + 0.8% in April, and 5.0% over one year, which is the largest increase recorded since 2008 (after + 4.2% in April) “. We must therefore keep both eyes wide open on this inflation story, but that’s not all. The other related subject is shortages. Many of you tell me about the various and varied shortages you are facing, which allows me to have a fairly broad view of the situation. Even if I cannot respond to all your messages personally, I can still read almost all of them! To be honest, there are more shortages than the sharp rise in prices. Faced with the many shortages, prices and adjustments via the price paid should be much more violent and rapid. For the moment, the “framework” contracts, agreements made with large-scale distribution, etc., have made it possible to limit the shock and make the rise in prices still not very visible for individuals. That will change as I told you in September. It is therefore in your interest to store and buy what is essential to you as quickly as possible. If the prices go up by 10%, it is better to buy immediately what you will need tomorrow, because with a Livret A at 0.50%, if you save 10% in price increase, you actually have an indirect return of 9.5% !! Yet, that being said, there is something that bothers me. This is the reason for the shortages. It is not possible at the time of this writing to explain the extent of the shortages by the Covid and the pandemic. This is not the explanation. If the shortages are not linked to the pandemic, something else is happening. But what ask yourself this question. It is crucial. What is the cause of the shortages? What is the cause of the shortages? What is the cause of the shortages? What is the cause of the shortages? I leave you, I still have some research to do to answer this question which will earn you a small special release in the form of a Flash Strategies in the coming hours / days. It is already too late, but all is not lost. Prepare yourselves !