Welcome to the FIA News & Insights, a one-stop resource that includes insights from senior investment professionals on timely market events, their views on the economy and their respective markets. Find updates on the latest media information on Frost Investment Advisors, LLC and the most recent reprints, as well as, archival information for your reference.
CPI Growth Making Multi-decade Highs
The Consumer Price Index (CPI) increased 7 percent year-over-year as the effects of last year’s stimulus continues to run off and supply chain disruptions continue. As the surge in the COVID-19 omicron variant reinstitutes restrictions on movement and causes labor shortages globally, an already stretched supply chain is being tested further. Before the latest wave hit, forecasts for ”normalization” of the supply chain were being pushed late into 2022. With these latest challenges, this now looks more likely to happen in 2023. Coupled with the hefty rent increases now making their way into more Americans’ leases, this seems likely to keep CPI growth elevated well above the Fed’s target of 2 percent for much of 2022.
Get the latest posts straight to your inbox