Is inflation finally under control?

18 days ago

Hi HODLers, Hivans and Lions,

Inflation is cooling down as we've seen in the last report. Many reasons are behind it but the main one is that the US Consumer is feeling anxious about the future and does not have as much disposable income as previously.

Some parts of the index are still hot such as Food away from home (+3.7% YoY), Shelter (+4.2% YoY) and Transportation Services (+6% YoY)
On then other side, Energy and Commodities prices have been coming down.

We had the PPI number this morning which represent the purchasing prices of some inputes used to produce a lot of what we consume. These were lowers than expected and should be reflected in CPI numbers in a few months.

The only inflationary pressure I see are the tariffs starting to hit some sectors/commodities. Apart from these and with the economy slowing down, the inflation scare might be behind us.

If that is the case, it will give more flexibility for the FED to act if they see a weakness in the US Economy.