Top of mind these days is inflation as it is the primary reason the Fed is raising interest rates so quickly. Inflation came in better than expected last month, but still sits at 7.7% year over year. This week’s chart breaks the reading into components, highlighting food and energy. While the current reading shows that energy has been a major factor to the high reading, energy prices have improved materially in recent weeks. Over the past 6 months, WTI is down over 33%. Inflationary pressures have been broad-based, but we expect them to continue to moderate in the coming months.

Source: U.S. Bureau of Labor Statistics

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