$USIRYY -U.S CPI Below Expectations (May/2025)ECONOMICS:USIRYY 2.4%
(May/2025)
source: U.S. Bureau of Labor Statistics
- The annual inflation rate in the US increased for the first time in four months to 2.4% in May from 2.3% in April, though it came in below the expected 2.5%.
Prices rose slightly more for food, used cars and new vehicles but shelter cost slowed and gasoline prices continued to decline.
Meanwhile, the annual core inflation rate held steady at 2.8%.
On a monthly basis, both headline and core CPI increased by 0.1%, falling short of market expectations.
USIRYY trade ideas
US INFLATION, a decisive figure this week!This week, which runs from Monday June 9 to Friday June 13, sees two fundamental factors which will have a strong impact on the stock market: the continuation of the trade diplomacy phase which is currently acting as a fundamental red thread (particularly between China and the United States) and, above all, the US inflation update according to the PCI price index on Wednesday June 11.
The key issue is to determine whether tariffs in the so-called reciprocal tariffs trade war have begun to trigger a rebound in inflation. This is what the US Federal Reserve (FED) is watching to determine whether or not it should resume cutting the federal funds rate, which has been on hold since last December.
1) Federal funds rate cuts have been on hold since the end of 2024
Unlike the European Central Bank and other major Western central banks, the FED has paused its key interest rate cut since the beginning of the year. The ECB's key interest rate, meanwhile, has been cut several times and now stands at 2.15%, i.e. a key interest rate considered neutral for the economy (i.e. neither an accommodating nor a restrictive monetary policy).
This divergence in monetary policy between the FED and the ECB is perceived as a risk by the market, while the trade war could end up having a negative impact on US economic growth.
2) The market does not expect the FED to resume cutting rates before September.
But Jerome Powell's Federal Reserve (FED) is taking a hard line, believing that the Trump Administration's trade war could undermine its efforts to fight inflation. Although the FED's inflation target of 2% is not far off, according to the latest ECP and CPI updates, the FED wants confirmation that companies have not passed on sharp price rises to compensate for the tariffs. This is why the inflation figures published this May have a decisive dimension at a fundamental level. The Fed will be able to resume cutting the federal funds rate if, and only if, disinflation is not threatened by the trade war.
3) This is why the ICP US inflation update on Wednesday June 11 is the fundamental highlight of the week.
This Wednesday, June 11, we'll be keeping a very close eye on the publication of US inflation according to the ICP. The monthly reading will be closely watched, as will the year-on-year nominal and underlying inflation rates.
The consensus is relatively pessimistic, with inflation expected to rebound at both monthly and annual rates. Real-time inflation, as measured by TRUFLATION, is still under control, so the pessimistic consensus may be overturned.
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Mid-Week Outlook Update: US CPI- Trade TalksCPI day today. Scheduled to be released at 7:30 AM CT.
CME:6E1! CME_MINI:ES1! CME_MINI:NQ1! CME_MINI:MNQ1! CME_MINI:MES1! COMEX:GC1! CBOT:ZN1!
ES futures edged slightly higher after positive commentary from US-China trade talks. The delegations from both sides agreed on a framework to move forward with negotiations.
It is important to note that Trade War 1.0 took about two years to formalize and finalize. However, given the previous experience and the current agreement on the framework, our opinion (which is not the consensus) is that the trade deal between China and the US may be closer than what most analysts and investors might otherwise predict.
Like any negotiations, China and the US have previously discussed these difficult issues and have found a way to resolve them. Although the concerns have shifted towards niche sectors, we still view baseline tariffs with some sectors seeing increased tariffs as likely.
TACO (Trump Always Chickens Out) acronym traders will see a tougher stance from Trump to resolve the overarching trade deficit issue with China, particularly the dumping of Chinese goods.
AI, defense technology, chips, and rare earth minerals are at the center of these discussions. There will be targeted controls on exports of chips from the US and exports of rare earth minerals on the Chinese side, despite the current framework and deals agreed. In our view, these controls will be phased out until agreements are finalized, to maintain leverage and show TACO acronym backers that Trump is not “chickening out,” but rather maintaining a strong stance while negotiating trade deals with China and other countries.
In our analysis, despite positive headlines, the overhanging uncertainty has not dissipated. In fact, there is clarity that President Trump is willing to take the difficult road to negotiate from an apparent position of strength. Would this result in extension of trade deadlines or temporary increase in tariffs followed by an extension of deadlines? This remains to be seen!
If May CPI comes in lower than expectations, this will be a nudge in the direction that tariffs are not translating into higher inflation. We may see a rally in index futures.
On the contrary, any increase in CPI above the previous 2.3% YoY increase will be seen as tariff-induced inflation.
In our analysis, given lower energy prices, rent inflation stabilizing at levels last seen in late 2021, and services inflation in the US trending lower from the peak in January 2023, we are seeing embedded inflation in the prior two months and this may remain sticky in today’s release. However, any stability with lower energy prices seen in the prior month will point to a lower inflation print overall.
Comment with your favorite trade idea from our past trade ideas and what you would like to see more of.
$USIRYY - U.S Inflation Rate Unexpectedly Slows (April/2025)ECONOMICS:USIRYY
April/2025
source: U.S. Bureau of Labor Statistics
- The annual inflation rate in the US eased to 2.3% in April, the lowest since February 2021, from 2.4% in March and below forecasts of 2.4%.
Prices of gasoline fell at a faster pace and inflation also slowed for food and transportation.
Compared to the previous month, the CPI rose 0.2%, rebounding from a 0.1% fall in March but below forecasts of 0.3%.
Meanwhile, annual core inflation rate steadied at 2.8% as expected, holding at 2021-lows.
gold and inflation in 1970s stagflation fomc member repeatedly saying this is not stagflation like 1970s
but gold bug on social media constantly pump stagflation narrative after gold historic run from $2000 to $3000 in just one year
with usa cpi and gold chart in one image you can get idea
how gold moved in last stagflation crisis with big political news : when paul volcker comes into fed and when Ronald Reagan wins election
gold first makes double top before multi year bear market
inflation peaked after volcker get fed control but before election result.
is this is really replay of 1970s ?
we got same old president trump and same old fed chair powell
✅ biden forced fed to do big size 50bps cut pre election to choose inflation over higher unemployment which is stagflation
✅ in his first term trump in election year March 2020 use covid as excuse to cut 0% and do QE and trillion dollar fiscal policy stimulus check. choosing inflation over high employment which is stagflation but it was biden who has to face most of the inflation spike to 9%
✅trump raise tariff to 100 years high to choose high employment over inflation which is recession
✅ in next 4 years it will be clear is this replay of 70s or not.
in future we will have more inflation and gold price data to confirm
$USIRYY -United States CPI (March/2025)ECONOMICS:USIRYY
(March/2025)
source: U.S. Bureau of Labor Statistics
- The annual inflation rate in the US eased for a second consecutive month to 2.4% in March 2025, the lowest since September, down from 2.8% in February, and below forecasts of 2.6%.
Prices for gasoline (-9.8% vs -3.1%) and fuel oil (-7.6% vs -5.1%) fell more while natural gas prices soared (9.4% vs 6%).
Inflation also slowed for shelter (4% vs 4.2%), used cars and trucks (0.6% vs 0.8%), and transportation (3.1% vs 6%) while prices were unchanged for new vehicles (vs -0.3%).
On the other hand, inflation accelerated for food (3% vs 2.6%).
Compared to the previous month, the CPI decreased 0.1%, the first fall since May 2020, compared to expectations of a 0.1% gain.
The index for energy fell 2.4%, as a 6.3% decline in gasoline more than offset increases in electricity (0.9%) and natural gas (3.6%).
Meanwhile, annual core inflation eased to 2.8%, the lowest since March 2021, and below forecasts of 3%.
On a monthly basis, the core CPI edged up 0.1%, below expectations of 0.3%.
Inflation rate vs FED FUNDS RATEThe inflation rate and the Federal Funds Rate are deeply interconnected, with the Federal Reserve using the latter as a primary tool to manage the former. When inflation rises above the Fed's target (typically around 2%), the Fed often increases the Federal Funds Rate to tighten monetary policy. Higher rates make borrowing more expensive, which can reduce consumer spending and business investment, thereby slowing economic activity and helping to curb inflationary pressures. Conversely, when inflation is too low or the economy is sluggish, the Fed may lower the Federal Funds Rate to stimulate borrowing, spending, and investment, which can help boost economic activity and push inflation toward the target. However, this relationship is influenced by external factors such as supply chain disruptions, energy prices, and global economic conditions, which can complicate the Fed's ability to control inflation solely through rate adjustments. For example, during periods of supply-driven inflation (like during a oil price shock), raising rates may have limited immediate impact on inflation but could still be used to anchor inflation expectations. Thus, the Fed's management of the Federal Funds Rate in response to inflation reflects a balancing act between stabilizing prices and supporting sustainable economic growth.
Inflation Leading Indicator Data with Agricultural Commodities Inflation leading indicator data is not derived solely from CPI numbers; more importantly, we must consider what drives these CPI numbers. By understanding this, we can stay ahead of the mass market.
Looking at past trends, we can observe that CPI numbers and agricultural commodities tend to move in tandem.
In this discussion, we will explore why agricultural commodities are an effective tool for projecting inflation direction and examine where these commodities may be heading.
Micro Agriculture Futures:
. Corn: MZC
. Wheat: MZW
. Soybean: MZS
. Soybean Oil: MZL
. Soybean Meal: MZM
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$USIRYY - U.S Inflation Rate Slows More Than ExpectedECONOMICS:USIRYY 2.8% YoY
(February/2025)
source: U.S. Bureau of Labor Statistics
- The annual inflation rate in the US eased to 2.8% in February below 3% in January and market expectations of 2.9%.
On a monthly basis, the CPI rose by 0.2%, slowing from 0.5% rise in January and below market expectations of 0.3%.
Core CPI also rose 0.2% on the month and was at 3.1% on a 12-month basis, both below consensus.
$USIRYY -U.S CPI (January/2025)ECONOMICS:USIRYY 2.9%
(January/2025)
source: U.S. Bureau of Labor Statistics
- The annual inflation rate in the US likely held steady at 2.9% in January 2025, matching December’s figure, which was the highest since July.
On a monthly basis, the CPI is expected to have risen by 0.3%, slowing from 0.4% in December, with food and energy prices continuing to increase, particularly natural gas.
Meanwhile, annual core inflation, which excludes volatile components such as food and energy, is anticipated to decline for a second consecutive month to 3.1%, marking the lowest level since April 2021.
In contrast, monthly core inflation is projected to edge up to 0.3% from 0.2% in December, driven primarily by an increase in new and used car prices.
Unemployment - In big pictureThe history of periods when unemployment was rising and key indicators illustrating economic stimulation through interest rate cuts.
For comparison, the impact on BTC and altcoins. Interestingly, throughout Bitcoin's entire history, the best periods have been when unemployment was declining. The only exception was during the COVID era, when the largest amount of money in history was printed, inflating the markets.
Currently, we are facing rising unemployment, unregulated inflation, escalating global conflicts, and a trade tariff war.
How will the stock market and the crypto market react?
The history of periods when unemployment was rising For comparison, the impact on BTC and altcoins. Interestingly, throughout Bitcoin's entire history, the best periods have been when unemployment was declining. The only exception was during the COVID era, when the largest amount of money in history was printed, inflating the markets.
Currently, we are facing rising unemployment, unregulated inflation, escalating global conflicts, and a trade tariff war.
How will the stock market and the crypto market react?
Inflation vs gold correlation 60's to 80's Pattern.Gold seems to like inflation. Or, is inflation food for gold? These are chars that no one is showing you.
According to this chart, Gold has a seven year bull run ahead of it that should top at some point in 2032.
This a chart of the US Inflation rate on the 2 month (Blue line) right from the horses mouth, Bureau of labour statistics. On the top in gold or yellow is the gold chart. As you can clearly see, in the seventies gold was very heavily correlated with inflation. This is not my opinion this is a fact, and it will be again.
THIS IS A 2 FOR ONE GUYS. INFLATION AND GOLD FORCAST ALL IN ONE!!
Let me know what you think down below.
Kind regards,
WeAreSat0shi
TARIFFS Will Lead To Inflation!? NOPE!So many talking heads crying TARIFFS will be inflationary,
but it’s mostly uneducated fear-mongering.
Let’s look at the cold, hard USIRYY and CPI data to figure out the truth behind this.
From March 2018 through September 2019, President Trump had eight waves of tariff announcements on C-H-I-N-A, plus some steel and aluminum ones on Mexico and Canada.
In order to combat these inflation worries, Trump did what he said he was going to do…
DRILL BABY DRILL.
For the first time since 1949, the US would be a net exporter of oil.
We can see there was a quick spike in inflation from stockpiling imports before tariffs were fully implemented, but inflation quickly plummeted nearly in half as the US became a net exporter.
Fast-forward to today, and coincidentally inflation is at 2.9% which is right around where it was when Trump imposed the tariffs during his last presidency. Funny how that works out, eh ;)
Trump has declared the US will DRILL BABY DRILL bigger than ever, which should lead us to believe that this time is NOT different and inflation will go down again.
$USIRYYY -U.S Inflation Rate (December/2024)ECONOMICS:USIRYY
December/2024
source: U.S. Bureau of Labor Statistics
-The annual inflation rate in the US accelerated for the third consecutive month to 2.9% in December, as expected.
On a monthly basis, the CPI rose by 0.4%, exceeding expectations of 0.3%.
However, annual core inflation slightly decreased to 3.2% from 3.3%, below the anticipated 3.3%. The monthly core rate also eased to 0.2% from 0.3%, in line with expectations.
$USIRYY -U.S CPI (November/2024)ECONOMICS:USIRYY
(November/2024)
source: U.S. Bureau of Labor Statistics
"US Inflation Rate Rises to 2.7%, Matching Expectations "
-The annual inflation rate in the US rose to 2.7% in November,
from 2.6% in October and matching markets expectations pushed up by food cost.
On a monthly basis, the CPI increased by 0.3%, the most since April, slightly above October's 0.2%, driven mostly by higher prices of shelter.
$USIRYY -U.S CPI (October/2024)ECONOMICS:USIRYY @2.6%
(October/2024)
source: U.S. Bureau of Labor Statistics
- US Inflation Rate Picks Up
The annual inflation rate in the US increased to 2.6% in October,
from 2.4% in September and in line with market expectations.
On a monthly basis, CPI rise by 0.2%, consistent with the previous three months with shelter index up 0.4%, accounting for over half of the monthly increase.
Meanwhile, core inflation stayed at 3.3% annually and 0.3% monthly.
A capture of inflation, dilution and stimulus /2024As we see by the chart, we had a series of events mostly around mega-stimulus for Covid and a massive dilution of currency as triggering events. Inflation rose and is now back down close to the desirable 2% inflation.
We don't want prices to go back to where they were, that is deflation and is not healthy for an economy. We want prices to stay near the same year after year with modest inflation. When inflation rises too fast, we increase interest rates to slow down spending, to reduce inflation. The best we can do is work on wage growth to accommodate the inflation from our past years while maintaining modest inflation.
At 2.4% inflation currently, there really is pretty much nothing to fix anymore, we just need to keep it around where it is, a little lower really and work on modest wage growth.
Looking at this data, it really looks like the vast majority of the culpability of that inflation we had came from 2020, one of the single worst years financially as a country with inflation starting to rise immediately in 2021, and exacerbated some in 2021.
Looking at this chart, there is a tangible possibility that we see >10% inflation by 2027
Here is the M2 money supply chart:
$USSIRY -U.S CPI (September/2024)ECONOMICS:USIRYY
US Inflation Rate Slows Less Than Expected
source: U.S. Bureau of Labor Statistics
-The annual inflation rate in the US slowed to 2.4% in September,
the lowest since February 2021 but surpassing market expectations of 2.3%.
Compared to the previous month, the CPI increased by 0.2%, the same as in August.
Meanwhile, annual core inflation unexpectedly rose to 3.3%, while the monthly gauge remined at 0.3%.
Long Term Prediction on Inflation Rates - 2031history may not repeat itself, but it rhymes... or so they say. But in this case, so far we have an EXACT repeat, starting in 2015. The chart uses the exactly same angles and duration from the inflation we had in the 1970s. I put this together around 6 months ago and so far... it continues to track.
You be the judge of what's going to happen. Of course, time will tell and we'll see how it all plays out.
$USIRYY -U.S Inflation Rate Falls to 2.5%- The annual inflation rate in the US slowed for a 5th consecutive month to 2.5% in August, the lowest since February 2021 and below market expectations of 2.6%.
Compared to the previous month, the CPI rose 0.2%, the same as in July, and matching forecasts.
Meanwhile, annual core inflation steadied at an over 3-year low of 3.2% but the monthly gauge edged up to 0.3%, above forecasts of 0.2%.
source: U.S. Bureau of Labor Statistics