The U.S. Consumer price index rose 5% year over year, higher than analysts had predicted, the highest since August 2008. One thing that should be noted is the core inflation rate, this excludes food and energy prices, was the largest gain in 30 years. Firstly, how many people can live without food or heat in the winter or gas for their cars? None? So why do they do this? Secondly, when was the last time you asked your friends about the cost of living not including food and gas prices? Evidently, economists live in a different world.
The CPI data is starting to fly in the face on the world’s major central banks, they have said this will subside by year end, what if it doesn’t?
Equity markets have moved higher into new territory, and each day higher is a new high, investors are starting to get caught up of easy money and are not keeping an eye on their investments, perhaps a monthly review is warranted.
The USDCAD is unchanged, expect an even narrower range today.
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