The Rebel Capitalist Show cover image

The Rebel Capitalist Show

News: CPI Just Hit Lowest Level Since 2021 (Here Are The Details)

Aug 14, 2024
Chris MacIntosh, a skilled investor and financial educator, joins Lyn Alden, a macroeconomic analysis expert, to dissect the recent 2.9% drop in the Consumer Price Index. They delve into how shelter costs skew inflation metrics and discuss market reactions following the CPI report. The duo also highlights the serious challenges facing China's steel industry and its potential impact on the global economy, connecting current events to historical economic downturns while advocating for solid economic principles.
16:08

Podcast summary created with Snipd AI

Quick takeaways

  • The recent decrease in the annual inflation rate to 2.9% reflects ongoing concerns about shelter costs significantly influencing overall economic indicators.
  • Fluctuations in treasury yields after the CPI report suggest market participants are wary of potential recessionary conditions amid weaker economic signals.

Deep dives

Inflation Trends and CPI Analysis

The annual inflation rate has decreased to 2.9% in July, the lowest level since 2021, driven by a 4.2% month-over-month increase that met expectations. Core CPI, which excludes food and energy, registered a modest rise of 0.2% monthly and 3.2% annually, reflecting the significant impact of rising shelter costs. Notably, a 0.4% increase in shelter costs accounted for 90% of the overall inflation increase, raising questions about the reliability of the owner's equivalent rent metric used to gauge housing costs. This emphasis on shelter highlights potential distortions in inflation data, suggesting that actual inflation experiences may differ significantly from reported figures, leading to skepticism about the broader economic conditions.

Get the Snipd
podcast app

Unlock the knowledge in podcasts with the podcast player of the future.
App store bannerPlay store banner

AI-powered
podcast player

Listen to all your favourite podcasts with AI-powered features

Discover
highlights

Listen to the best highlights from the podcasts you love and dive into the full episode

Save any
moment

Hear something you like? Tap your headphones to save it with AI-generated key takeaways

Share
& Export

Send highlights to Twitter, WhatsApp or export them to Notion, Readwise & more

AI-powered
podcast player

Listen to all your favourite podcasts with AI-powered features

Discover
highlights

Listen to the best highlights from the podcasts you love and dive into the full episode