CPI was good!
Two CPI prints in a row were showing inflation to roll over.
39% to 40% of the CPI print is housing. Rent, owner equivalent rent, lodging away from home. It's a big portion and it's lagging data over the last 12 months.
Housing isn't a big component of the PCE. If there's a beat on this PCE, then that's yet another piece of data that shows inflation is rolling over and coming down, which is generally positive for the markets.
When inflation and the price of goods come down, our wages have more strength and they're worth more.
And that is a tailwind for the economy, considering and assuming that inflation continues to come down.
Productivity has been increasing. If jobs are being lost in the economy and the people that are left are working harder with that amount of work, productivity is a boost and it helps our economy.
#KPTalks #inflation #wages #wagepower #spiralinflation #productivity #tailwind #CPI #rent #ownerequivalentrent #laggingdata #housing #PCE #homeprices
