Rebel Capitalist News BREAKING: New Inflation Was Released (Nobody Was Expecting This)
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May 16, 2025 New inflation data has caught economists off guard, exposing vulnerabilities in the economy, particularly for lower-income groups. A detailed breakdown reveals surprising shifts in core inflation rates and transportation costs. The discussion challenges the idea of stagflation, using historical comparisons to clarify myths about prolonged high inflation. Lastly, the impact of tariffs and interest rate strategies is analyzed, along with personal investment insights aimed at navigating this unpredictable economic landscape.
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Weak Retail Sales and Economic Struggles
- Retail sales are weak or negative when adjusted for inflation, indicating struggling consumer demand.
- High credit card delinquencies and student loan issues confirm economic stress on the bottom 75%.
Significant Drop in Producer Prices
- Producer Price Index (PPI) dropped 0.5% in April, a massive miss compared to expectations.
- This signals significant disinflation, refuting expectations of rising inflation in the near term.
No Sign of Stagflation Yet
- Current inflation trends do not match stagflation patterns of the 1970s; inflation is not accelerating during economic slowdown.
- Historical data shows inflation tends to decline or remain flat during periods of rising unemployment and economic contraction.