This is because Russia now has to ship oil to far away places (India and China) instead of delivery through pipeline.
9.1% print. But hey, its transitory, like Usualname and Barry tell us! Just hold out a little longer, and it'll be less transitory.
Funny how in the face of repeated and harsh rate hikes inflation is still running pretty hot. It’s almost as if rate hikes are not the answer.
I think these rate hikes are really nothing.... rates are still relatively low and consumer spending is really strong and there are still s upply chain issues. ALthough not as bad as last year, it still costs a shit ton of money to move cargo from Asia to U.S. and I think 60-70% of our imports come from Asia. This inflation will not go away until, at least for the U.S., we slow down demand and consumer buying. But we are entering the holiday season buying period for business who start stocking for Xmas season July - Sept. Still costs $14,000 for a container from Asia to West Coast, cheaper form China but still pretty high compared to 2020 and 1st half of 2021. I dont see the fed doing anything to change this except to cause a mini recession to curb spending which will drop demand and take hte pressure off the system.
Yes, I agree we can have higher interest rates and quite frankly we should. My concern is that the Fed is raising rates too much too quick and ultimately tilting at windmills. rather than easing into healthy rates we are lurching and shocking the economy. Also, at some point the strength of the dollar is going to become a real issue for domestic manufacturing and corporate profits.
And the strong dollar also supports greater consumer spending so it is like a double edged sword and not sure which one cuts first
We’ll see, fuel prices have receded ~12%. If that stays or continues down we should see some easing, especially with the dollar moving. However, the over the horizon problem remains housing. Rent increases are here to stay, 12-25% seems to be the norm yoy depending on region. And housing makes up 1/3 CPI.