U.S. Consumer Prices Increased in March by Most Since 2012, But Core Inflation Still Only 1.6% YoY (Is Bitcoin The New Inflation Hedge?)

by confoundedinterest17

(Bloomberg) — U.S. consumer prices climbed in March by the most since 2012, adding to evidence of budding inflationary pressures as the economy reopens and demand strengthens.

The consumer price index increased 0.6% from the prior month after a 0.4% gain in February, according to Labor Department data Tuesday. A jump in the cost of gasoline accounted for almost half the overall March advance. The median estimate in a Bloomberg survey of economists called for a 0.5% rise.

Excluding volatile food and energy components, the so-called core CPI increased 0.3% from a month earlier, the most in seven months and reflecting rising rents and auto insurance.

CPI YoY rose 2.6% while CORE CPI YoY rose only 1.6%. Owners Equivalent Rent of Residences remains at 2% YoY.

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Once again, lower and middle income households consumer larger proportions of food and energy in their budgets than high income households. Yet The Federal Reserves focuses on what impacts the higher-income households.

The Covid epidemic led to a slump in CORE inflation, but inflation has picked up since then. But not much.

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It looks like Bitcoin is acting as an inflation hedge while gold has not.

If the Fed REALLY wanted inflation, all they have to do is revert to earlier methods of calculation. Then we would like to see a rush to gold and silver again.

Here is this AM reaction to the inflation report. Bitcoin surged overnight, but gold surged on the CPI report.

Random Length Lumber Futures are up 74% since Biden’s inauguration.

I wonder if steaks at Charles Mulligan’s Steak House have increased in price?

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