Inflation is ‘here for a while’: investment expert

Macro Trends Advisors LLC founding partner Mitch Roschelle warned on Sunday that inflation will be « here for a while » as consumer prices hit a new four-decade high last month.

Speaking on ‘Fox News Live’, Roschelle predicted that price increases are likely to go even ‘higher’.

« Housing costs, what it costs for housing, ends up being a lagging indicator in how it’s calculated by the government, » he noted. « And those prices keep going up. »

Roschelle pointed out that « house prices are going up even as interest rates go up » and that « rents are skyrocketing. »

GASOLINE PRICES REACH $5 NATIONWIDE FOR FIRST TIME IN OVER 2 DECADES

“So I think you have that as a tailwind that pushes up inflation,” he pointed out.

Earlier this month, the Labor Department revealed that the Consumer Price Index (CPI), a broad measure of the price of everyday goods, including gas, groceries and rents , was up 8.6% in May from a year ago. Prices jumped 1% in the month-long period from April. Those figures were both higher than the headline figure of 8.3% and the monthly gain of 0.7% predicted by economists at Refinitiv.

It marked the fastest pace of inflation since December 1981.

Roschelle noted that higher prices force Americans to « make choices. »

Shelter costs – which account for about a third of the CPI – accelerated in May, climbing 0.6%. This is the fastest monthly increase since 2004. On an annual basis, housing costs rose 5.5%, the fastest since February 1991.

Energy prices rose 3.9% in May from the previous month and 34.6% from a year ago. Gasoline costs on average 48.7% more than a year ago and 7.8% more than in April. In total, fuel prices jumped 16.9% in May on a monthly basis, pushing the year-on-year increase to 106.7%.

On Sunday, the national gasoline average was $4.90, slightly lower than the day before and 30 cents higher than the previous month, according to AAA.

Gasoline prices have recently hit record highs with a national average above $5 a gallon two weeks ago, according to the association.

Roschelle pointed out that « oil prices, whether it’s diesel or gasoline, affect virtually everything we consume. »

« The food on the table has to arrive from wherever it came, the store where you bought it or the restaurant serving it, » he continued.

« If gasoline prices stay the same or go up, and more importantly, if diesel prices go up, I think that’s going to push inflation. »

Roschelle went on to note that this is why he thinks inflation is going to last « a while. »

CLICK HERE TO GET THE FOX NEWS APP

“In fact, not only will this be a problem for the midterm elections, but it is possible that once the potential presidential candidates take the lead, they will start going to Iowa and New Hampshire. , that’s probably going to be a problem as well, » he continued.