15 Jul 2022
US Consumer Price Index (CPI)
- Posted by Dejan Pekic BCom DipFP CFP GAICD, Senior Financial Planner
Annual CPI in the United States rose to 9.1% in June 2022 from last year.
The biggest drivers have been energy and services (see chart above).
Will inflation run away?
Yes it has in the short term but unlikey over the next decaded because of technological innovation.
The supply of goods will increase as the War in Ukraine and the COVID-19 virus are brought under control while robotics/artificial intelligence are combining to eliminate humans from the work force.
Fewer people working means less wages and it is the absence of wage pressure that will subdue inflation over the next decade.
Click to read.
Right now however it is key to remain invested according to your appetite for volatility and continue to buy more quality assets at discounted prices.
If you have family, friends or colleagues that want financial advice please ask them to contact us and we will work out how best to help.
At Newealth we are always looking to support and promote our clients wherever possible and if you have any ideas or comments, please feel free to email me or to call me on +61 2 9267 2322.
