This is how inflation is hitting your wallet

We’re less than one week away from the Federal Reserve’s September 18 meeting. It’s a near certainty that the central bank will lower interest rates for the first time since early 2020. But before they decide how aggressive they’ll be, the Fed got two more important economic readings… [Header]( This Is How Inflation Is Hitting Your Wallet We’re less than one week away from the Federal Reserve’s highly anticipated September 18 meeting. It’s a near certainty that the central bank will lower interest rates for the first time since early 2020 when COVID-19 fears were spreading quickly. The current odds of a 25-basis-point (0.25%) rate cut stand at 65%. And there’s a 35% chance that rates will be cut by 50 points. But before they decide how aggressive they’ll be, the Fed got two more important economic readings to analyze… The Consumer Price Index (CPI) – which was released Wednesday – fell to 2.5%. That was its lowest reading in more than three years. Meanwhile, the Producer Price Index (PPI) – which came out before Thursday’s opening bell – increased 1.7% year over year. The two benign inflation numbers helped push the S&P 500 to a four-day winning streak – up 3.5% between last Friday’s close and yesterday’s – after posting its worst one-week return since early 2023 last week. The Fed has maintained that its goal is for inflation to fall to 2%. And based off the current trajectory – as well as the August inflation numbers – that might be an achievable target in the coming months. --------------------------------------------------------------- Best Income Strategy For 2024 (start with just $100) [MML Video]( Right now, there's an unusual $100 way to collect MONTHLY income from the markets. But it's by far my #1 investment opportunity for 2024. It’s from a little-known asset I call “Crypto Royalties.” [Click here for all the details]( --------------------------------------------------------------- But even though the headline CPI number continues to fall, the average American still has some concerns… Many folks feel that prices remain extremely elevated. Remember, the 2.5% figure is an increase in inflation over the past 12 months. That means prices are still increasing – they’re just not as high as the 9.1% annual increase we saw at its peak in 2022. [CPI yoy] But just because inflation is coming down doesn’t mean that prices will go back to where they were a few years ago – or even drop at all. As you can see in the chart below, shelter inflation – the single largest component of the CPI – increased 5.2% over last year. That’s a big reason why the overall inflation figure remains above 2%.[CPI yoy] Shelter inflation is responsible for 70% of the increase in the core CPI number (excluding food and energy). And this number has been baffling to me. Non-government readings show that rent has been stagnant for more than a year, yet the CPI shelter index continues to increase faster than overall inflation. The food component of the CPI was up 2.1%. And food at home was up just 0.9%. That means prices are getting better, but we’re still not seeing that across the board… Eggs – one of my favorite foods and a staple in many households – cost 28% more than last year as prices continue to soar due to the bird flu. And grilling hotdogs was also more expensive than usual this summer, with prices up 11% year over year. Meanwhile, overall energy costs are down 4% over last year, but the price of electricity was still up 3.9%. That’s a major concern for me and many other Americans. A large portion of the population is struggling to pay utility bills and being forced to cut back on everything from summer vacations to groceries. So yes, the headline inflation number is improving. But most folks are still feeling the effects of higher prices. The good news is that there’s a way to profit from this scenario. I’m currently in the process of building a portfolio that can do just that, so stay tuned. I’ll have more on that in the coming weeks. Now, let me leave you with one final comment… When politicians blame the grocery stores or the greedy large corporations for high prices, remember that the U.S. government has been and continues to spend money like a drunkin’ sailor. You know where to point fingers. Don’t let them tell you otherwise! Here’s to the future, [Matt McCall signature] Matt McCall Editor, Market Insights Check Out My Latest Podcast [STEP 16]( Many investors believe we’re in the midst of a sizable market pullback. But it’s not as bad as most folks think. [On today’s new episode of the SteadyTrade Podcast](, Tim Bohen and I discuss what exactly is going on in the market… and how to take advantage of it from two perspectives. Two big questions are looming over investors today… Is the pullback in large tech stocks a great buying opportunity? And should you consider diversifying out of well-known tech stocks and into other sectors of the market? Tim and I share our strategies. [Click here to learn the details](. © Centurion Publishing 13809 Research Blvd, Suite 500, Austin, TX 78750 [CenturionPub.com]( *Results are not typical. Past performance does not indicate future results. All investing carries risk. Our Privacy Policy, along with our Term & Conditions, governs your use of this site. By using our site, or by accepting the Terms of Use (via opt-in, checkbox, pop-up, or clicking an email link confirming the same), you agree to be bound by our Terms & Conditions and our Privacy Policy. If you have provided personal, billing, or other voluntarily provided information, you may access, review, and make changes to it via instructions found on the Website or by replying to this email. 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