Know The Difference Minute

We figured the Consumer Price Index wasn’t heading back down—the estimate was for 8.8%. Instead, a 9.1% number landed.

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Another monster number.
Welcome to the Know the Difference Minute for Wednesday, July 13th.
We figured the Consumer Price Index wasn’t heading back down—the estimate was for 8.8%.
Instead, a 9.1% number landed. Officially, it’s a new pandemic-era peak and the highest level in more than 40 years.
It’s the usual suspects. Gasoline up nearly 60%. Electricity and natural gas up 13.7% and 38.4%. Overall, energy prices rose by over 41% year-over-year.
Food and energy costs fluctuate quickly. The number the Fed pays most attention to is core CPI—and excludes those categories. Core CPI is up nearly 6% in a year.
Is this the green light for a 75-basis point interest rate hike in a couple weeks? On one side sits healthy employment—on the other side, today’s buzzkill CPI.
I’m Dave Spano from Annex Wealth Management. That is your Know the Difference Minute.