By Graham Summers, MBA
You can forget about what the media is telling you…because REAL inflation has come down much at all.
The media likes to trumpet that headline inflation has dropped in the U.S. from a peak of ~9% down to ~6%. However, as I’ve noted time and again, the ONLY reason headline inflation has dropped this much is due to energy prices falling. And the primary reason energy prices have fallen is because the Biden Administration has dumped over 150 MILLION barrels of oil in the last 12 months pushing oil down from $130 a barrel to $70 a barrel.
Core inflation, which removes the effect of energy and food, presents a much clearer picture of underlying inflation without the impact of these political shenanigans. And the situation for core inflation (blue line) doesn’t look NEARLY as promising as headline inflation (red line) as the below chart illustrates.
As you can see, core inflation has barely dropped much if at all. And it’s now in the process of turning back up!
And bear in mind, this is after the Fed performed its most aggressive 12 month monetary tightening in history, raising rates from 0.25% to 5%!
So what do you think will happen to inflation now that the Fed is beginning to talk about pausing its rate hikes?
Gold has figured it out. The rest of the market will soon as well!
On that note, we published a Special Investment Report concerning FIVE secret investments you can use to make inflation pay you as it rips through the financial system in the months ahead.
The report is titled Survive the Inflationary Storm. And it explains in very simply terms how to make inflation PAY YOU.
We are making just 100 copies available to the public.
As I write this, there are only 29 left.
To pick up yours, swing by: