Source: The Patriot Light | AWK Network | VIEW ORIGINAL POST ==>
The war is over: not the war in Ukraine or Gaza – I mean the war on inflation.
Shoppers, understandably, are still freaking out in the grocery aisles, most recently over egg prices. Meanwhile, economists, politicos and pundits continue to sweat allegedly “sticky” categories for goods and services and rising wages – especially after January’s Consumer Price Index accelerated.
They are all fighting the last war. How about you and your stock portfolio?
Yes, inflation has hammered households since 2021 and it has been horrific. The CPI ended January 23.4% above December 2019 – and that understates many shoppers’ experience – including yours, probably. It’s also true that the end of a military war doesn’t mean the destruction is somehow reversed.
The latter, unfortunately, is also the case with inflation. Prices and inflation are different. Inflation is the speed of rising prices — now 3% versus a year ago based on CPI. Prices overall don’t fall. Select categories may, but broadly falling prices – aka…
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