According to new data, annual inflation rose at its fastest pace in more than 30 years last month. Core PCE, which excludes food and energy prices, rose 3.6% year over year, according to the Bureau of Economic Analysis. Core prices have accelerated by that amount for four straight months. In other news, one expert is advising investors to look for price gains in copper, gold, and silver.
Inflation notches a fresh 30-year high as measured by the Fed’s favorite gauge
Annual inflation rose at its fastest pace in more than 30 years during September despite a decline in personal income, the Commerce Department reported Friday.
Headline price pressures as gauged by the personal consumption expenditures price index including food and energy increased 0.3% for the month, pushing the year-over-year gain to 4.4%. That’s the fastest pace since January 1991.
Stripping out food and energy costs, inflation rose 0.2% for the month, in line with the Dow Jones estimate, and 3.6% for the 12-month period, unchanged from August but good for the highest since May 1991.
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Remember the ’70s? Watch the energy shock & look for gains in gold, silver, and copper, says Lobo Tiggre
Commodity supercycle or not, copper has one of the “most bullish cases” around, said Lobo Tiggre of The Independent Speculator.
No matter the general sentiment around commodities, the copper supply-side ensures price gains in the future.
“I like copper a lot. It is one of the most solid bull cases. And even if the commodity supercycle does roll over, I could see copper keep on going,” Tiggre told Michelle Makori, editor-in-chief of Kitco News.
And even though copper is no longer cheap at $4, it doesn’t mean the rally is over, he pointed out. “It takes ten years for [mines] to come online. And even once you line up the financing, the permits, and all that other stuff … it still takes five years for these big copper mines to come online.”
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Fox Business/Jonathan Garber
US economic growth falls short of expectations as consumer spending slows
U.S. economic growth decelerated in the third quarter as consumer spending slowed amid a resurgence in new COVID-19 cases and as government assistance payments decreased.
Gross domestic product – the broadest measure of economic performance – grew at a 2% annual rate during the three months through September, the weakest of the recovery, according to an advance estimate released Thursday by the Commerce Department. Analysts surveyed by Refinitiv were expecting 2.7% growth. Second-quarter GDP was 6.7%.
“The Delta wave of infections, the waning fiscal stimulus and shortages, particularly of motor vehicles, triggered a marked slowdown in consumption growth,” said Paul Ashworth, chief U.S. economist at research firm Capital Economics.
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