The March CPI Inflation report was released on Monday the 11th. Overall, Inflation rose to 8.5%. But the actual inflation rate is higher than the report says. For example, The report states that the inflation rate for housing/shelter is 5%. But, according to Redfin, the U.S. rents increased by 15.2% year over year to $1,891. That certainly sounds about right here in the Poconos.
So why the HUGE difference in reporting? The CPI is not using real-current rent data. Instead, it uses a government survey "Owner Equivalent Rents” (in short, an estimate on how much an owner can rent their house for). This questionnaire is worded so that it seems to provide lower inflation data points.
Be prepared for a considerable increase in food, energy, and especially oil prices. Oil prices rose 48% year over year. The negative impact on low-income households in our community who may struggle to make ends meet is disheartening.
Accelerated Inflation is coming. The Fed plans to Fight Inflation by slowing down the economy. They plan on raising interest rates and taking the money out of the system. There are concerns that the Fed will trigger a recession. And cause about a 30%+ Market drop in the second quarter of this year. That is what wealth manager Michael Pento predicts. The Fed will meet on May 3, June 14, and July 26. Raising rates at each meeting over the next three months will be a devastating disaster for the economy. This will directly affect anyone trying to get a mortgage, the stock, bond market, and cryptocurrencies.