Guess Inflation Digs In As Fed Blinks?

As the Fed raised its interest rate another 75 base pts Wednesday to likely trigger higher mortgage rates AND higher homeowner utility bills, it increases chances of inflation staying propped up at record levels for a while …

As most economists have repeatedly noted now, so-called “housing” or “shelter costs” are major drivers of inflation, especially since they make up as much as 25% of the nation’s overall inflation rate. As DOL stats show that inflation number has eased a bit to 8.3% in August from 8.5% in July,” thanks to slower price increases for gas, airfare & used cars, it keeps getting elevated by the housing increases. Just look at “rents” for apartment buildings as they go up and up without let up. Meanwhile, you can add to this inflationary recipe expected increases in home heating bills as US natural gas is being exported to Europe to offset Russia’s shutting off much of its supply to the EU.

A recent WSJ article notes economists are “hoping” these housing costs, especially rents, will eventually moderate, too, BUT the “Question is when?” And, that would seem to be anybody’s guess as the Fed also blinked when it “signaled” another rise in its interest rates can be expected after its scheduled November and December next step pow pows.

Davd Soul