7-Chart Thursday

By Charlie Bilello of COMPOUND

7 charts from the past week that tell an interesting story in markets and investing…

1) A Year of Rising Inflation

Consumer prices in the US increased 7% over the last year, the highest rate of inflation since 1982.

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Here’s a breakdown of price increases from the latest CPI report:

  • Gasoline: +49.6%
  • Fuel Oil: +41.0%
  • Used Cars: +37.3%
  • Gas Utilities: +24.1%
  • Meats/Fish/Poultry/Eggs: +12.5%
  • New Cars: +11.8%
  • Overall CPI: +7.0%
  • Food at home: +6.5%
  • Electricity: +6.3%
  • Food away from home: +6.0%
  • Apparel: +5.8%
  • Transportation: +4.2%
  • Shelter: +4.1%

Of all these categories, the most surprising has been the sustained price increases in used cars and trucks, which are 37% higher than a year ago. Nearly everyone thought that the supply/demand imbalance would have abated by now, but it hasn’t happened just yet.

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2) What’s the Actual Inflation Rate?

7% was the reported US inflation figure but there’s strong evidence pointing to the actual number being much higher.

Why? Read more