Year-Over-Year Inflation Reaches 30-Year High

Thanks to the rally in Trex (TREX), yesterday was one of our Buy List’s best days against the S&P 500 this year. Our Buy List gained 0.94% while the S&P 500 fell 0.35%. The latter snapped an eight-day win streak.

This morning’s jobless claims report fell to 267,000. That’s another pandemic low. Economists had been expecting 275,000. Jobless claims are now within the ballpark of their range prior to Covid. For most of 2018 and 2019, jobless claims came in between 200,000 and 240,000. The peak was 6.1 million. The report usually comes out on Thursday but tomorrow is Veteran’s Day.

Today’s inflation report showed that consumer prices rose by 0.94% last month. That’s the highest in 13 years and the 4th-highest in the last 39 years. Wall Street had been expecting an increase of 0.6%.

Over the last year, consumer prices have increased by 6.2%. That’s the most in 30 years.

Core inflation, which excludes food and energy, rose by 0.6%. Wall Street had been expecting an increase of 0.4%. The 12- month core rate is 4.58%.

Fuel oil prices soared 12.3% for the month, part of a 59.1% increase over the past year. Energy prices overall rose 4.8% in October and are up 30% for the 12-month period.

Used vehicle prices again were a big contributor, rising 2.5% on the month and 26.4% for the year. New vehicle prices were up 1.4% and 9.8%, respectively.

Food prices also showed a sizeable bounce, up 0.9% and 5.3% respectively. Within the food category, meat, poultry, fish and eggs collectively rose 1.7% for the month and 11.9% year over year.

The price increases meant that workers fell further behind.

Posted by on November 10th, 2021 at 3:04 pm


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