Inflation is ‘here for a while’: investment expert

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Macro Trends Advisors LLC founding partner Mitch Roschelle warned Sunday that inflation “will be here for a while” as consumer prices hit a new four-decade high last month.

Speaking on Fox News Live, Roschelle predicted that price hikes are likely to be “higher.”

“Housing costs, what it costs for housing, is ultimately a lagging indicator as calculated by the government,” he noted. “And those prices keep going up.”

Roschelle pointed out that “home prices are rising even as interest rates are rising” and “rents are skyrocketing.”

NATIONALLY GAS PRICES REACH $5 FOR THE FIRST TIME IN OVER 2 DECADES

“So I think you have that as a tailwind that’s pushing up inflation,” he pointed out.

Earlier this month, the Labor Department said the Consumer Price Index (CPI), a broad measure of the price of basic necessities including gasoline, groceries and rent, rose 8.6% in May from a year earlier. Prices rose 1% in the one-month period from April. Those numbers both came in above the 8.3% forecast by Refinitiv economists and the monthly gain of 0.7%.

Macro Trends Advisors LLC founding partner Mitch Roschelle warned that inflation is forcing Americans to make decisions as prices hit a new four-decade high in May.

Macro Trends Advisors LLC founding partner Mitch Roschelle warned that inflation is forcing Americans to make decisions as prices hit a new four-decade high in May.
(Istock)

It marked the fastest pace of inflation since December 1981.

Roschelle noted that higher prices are forcing Americans to “make choices.”

Housing costs — which make up about a third of the CPI — accelerated in May, rising 0.6%. It was the fastest increase in one month since 2004. On an annual basis, housing costs have risen 5.5%, the fastest since February 1991.

Energy prices rose 3.9% mom and 34.6% yoy in May. Gasoline costs on average 48.7% more than a year ago and 7.8% more than in April. Overall, fuel prices rose 16.9% on a monthly basis in May, pushing the one-year increase to a staggering 106.7%.

On Sunday, the national average for gasoline was $4.90, according to the AAA, down slightly from the previous day and 30 cents higher from the previous month.

According to the association, gas prices have recently hit records, with the national average topping $5 a gallon two weeks ago.

Roschelle pointed out that “the price of oil, whether diesel or gasoline, flows through virtually everything we consume”.

“The food on the table has to come from where it came from, to the store where you bought it or the restaurant that serves it,” he continued.

“If gas prices stay the same or go up, and more importantly, if diesel prices go up, I think that will drive inflation.”

Roschelle added that he believes inflation will therefore last “for a while”.

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“In fact, it’s not just going to be an issue in the midterm elections, it’s possible that it’s likely to be an issue as well once the potential presidential candidates get on the track and go to Iowa and New Hampshire,” he continued.