More Inflation News As ECB Targets July Hike

With inflation in the European Union reaching a record high of 8.1% in May, the European Central Bank says it’s aiming for its first rate hike in about a decade this July.

The central bank joins its global counterparts like the U.S. Federal Reserve and Reserve Bank of Australia, who are both taking aggressive action to bring down inflation in their countries.

In other inflation news, U.S. gas prices topped $5 nationally this week as the world struggles to handle energy prices.

Consumers are feeling pain at the pump AND the grocery store as manufacturers try to hide price increases through a practice coined “shrinkflation.”

To help people keep pace, the Social Security Administration signaled that a cost-of-living adjustment of around 8% will go into effect by the end of the year.

And for all of us thinking that Social Security will run out of money soon anyway…Senators Warren and Sanders put forward a proposal to increase the program’s life span by 75 years.

All eyes in the U.S. will be on tomorrow’s Inflation data, and Michigan Consumer Sentiment readings as market participants continue to assess the state of the economy. 👀

More in   Economy

View All

A Very Important Shopping Season

It’s not even October yet, and companies are already talking about holiday shopping. Hell, Halloween candy has been on the shelves of my local store for about two months now. And Black Friday sales preclude Thanksgiving, as every company competes for your hard-earned dollars.

Now we all know it’s been a tough year for retail, which makes this holiday shopping season all that more important. 🛍️

Read It

A ‘Freightful’ Situation Is Brewing

In addition to the GIF above haunting your dreams, a national rail strike could haunt the U.S. economy starting next week. 😱

Labor negotiations between the National Mediation Board, unions, and freight railroads, are coming to a head after years of back and forth. If they can’t agree, more than 100,000 Class I railroad employees will strike. As a result, both freight and commuter rails would be affected as the 140,000-mile network of rails across 49 states grinds to a halt.

Read It

Another Inflation Data Surprise

Yesterday’s consumer prices surprised us in a bad way, while today’s producer price surprise was slightly better. Headline producer prices fell 0.1% MoM, while the core readings (which exclude food and energy) declined 0.2% MoM. 📉

The best headline number since August 2021 is attributed to a decline in energy prices and a 0% MoM change in food prices. The flat reading in food is significantly different from the CPI, which saw food prices rise 0.8% in August.

Read It