Rising inflation is still elusive for the US economy. According to today's CPI release, the cost of living is unchanged from last month, and up a mere 1.2% on an annual basis. That's well below the Fed's 2% target, and many economists believe the US would be better off with a 3% inflation rate or higher. Energy was the biggest component of the CPI to drop, but apparel saw a decline as well. Even core inflation, which strips out food and energy, only increased by 0.2% from the previous month. The annual rate for core inflation is somewhat higher at 1.7%, but still not high enough to be considered healthy for the economy. Keep in mind, deflation has always been a far bigger risk than inflation since the Great Recession began. A little dose of higher inflation would be good news for everyone. (VIEW LINK)
I'm an investments analyst for a US-based independent investment research firm. My focus is on economics, options, and all types of stocks, but especially tech, Internet, and renewable energy companies. I have experience as a options market...
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