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CPI Issue Won’t Be Fixed Quickly

CPI came out at 8.6% today year over year. This was higher than expected. Believe it or not, the real issue isn’t gas prices. The real issue is that inflation is becoming engrained in the economy.

I’ve posted this before, but here is CPI broken down over the last 17 months. The left column is CPI. The middle is the part that comes from used cars and transportation. The right is what’s left over. Like Shelter. Food. Etc.

When inflation first started spiking, non-transportation CPI was well under 2%. However, now we can see it’s close to 5% and rising every month.

Given things like Shelter has a looong way to go before it peaks, CPI will continue to be a problem for the market. Which means the Fed is going to be an issue going forward.

By Christopher Schwarz, ago

LIFEvest in-kind Donation

As many of you know, the Center for Investment and Wealth Management has a residential college-bound program that uses financial literacy as a way to prepare and motivate high school students to be the first in their families to go to college.

This summer we’ll be running the program for the first time since COVID. Not only that but we will have more than 50% more students than EVER in the program.

Been enjoying the content on the blog? Considering giving an in-kind donation from the list below. Email me (cschwarz at uci.edu) to coordinate dropoff.

If you’d like us to do the heavy lifting, you can make a financial donation here for whatever items you want to support and we’ll go out and get it.

Thanks for your generosity!

By Christopher Schwarz, ago