Wayne Strout is an Investment Manager and Economist in the York, PA area (Office in New Freedom, PA) Investment advisory services are by WS Wealth Managers, Inc., an investment adviser registered in Pennsylvania and Maryland. (See ADV for more info)
Thursday, August 21, 2014
Some Stats to Go with Things Seem Expensive
With reported "CPI" inflation being around 2%, let's take a look at some "price increases" June 2013-June 2014 (approximate)
Coffee UP 43%
Natural Gas UP 26%
US Stocks (S&P500) UP 19%
Sugar UP 15%
Beef UP 13%
Home Prices (US) UP 11%
Health Insurance UP 11%
International Stocks UP 10%
Drugs (non Generic) UP 8.5%
US Treasury Debt (10yr) UP 7.5%
Shrimp UP 4%
Avg Salary UP 2.8%
Chicken UP 2%
Gasoline No Change!
Corn (Price to Farmer) DOWN 30%
I'd say if the Federal Reserve is hoping for increased "inflation" by keeping interest rates low--they have accomplished their goal! These kind of price increases lead to lower consumption and declining GDP or reduced corporate profits....or both.
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