As I write this 89% of Colorado is in a state of drought with our precious snow-pack at 51% of median and falling. This makes Sam Clements quite prophetic…
Yes, we are fighting over oil and gas in the Middle East, and have been for decades, with the price of benchmark Brent rising precipitously as is the resulting price of a gallon of gas at the pump.
1. Gasoline — +21.2% for the month The gasoline index surged 21.2% in March and alone accounted for nearly three-quarters of the entire monthly CPI increase.
2. Energy overall — +10.9% for the month / +12.5% year-over-year Fuel oil spiked 44.2% year-over-year, compounding the gasoline move and driving the broader energy index sharply higher.
3. Shelter — +3.0% year-over-year The shelter index increased 3% over the last year, the same pace as January, remaining the single largest component of core CPI.
4. Transportation services — +4.1% year-over-year Transportation services rose 4.1% annually, reflecting both higher fuel costs feeding through to shipping and travel pricing.
5. Medical care services — +3.7% year-over-year Medical care services rose 3.7% annually, though BLS noted prices in this category actually fell month-over-month in March.
I think this smells like inflation which means rising interest rates which can mean lots of things. And, if you’re a reader of my missives, you know I feel that a recession is in our not so distant future. Add issues with China v. Taiwan; Venezuela cutting off Cuba; and, our currency…
…and you end up quoting Eddie Cochrane:
there ain’t no cure…
For the summertime blues