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Macro Trends Advisors LLC founding partner Mitch Roschelle warned on Sunday that inflation would be “here for a while” as consumer prices hit a new four-decade high last month.
On “Fox News Live,” Roschelle forecasted that price hikes will likely go even “higher.”
“Shelter costs, what it costs for housing, ends up being a lagging indicator the way the government calculates it,” he noted. “And those prices are continuing to go up.”
Roschelle pointed out that “home prices are rising even though interest rates are rising” and “rent is skyrocketing.”
GAS PRICES HIT $5 NATIONWIDE FOR THE FIRST TIME IN OVER 2 DECADES
“So I think You have that as a tailwind pushing up inflation,” he stressed.
Earlier this month, the Labor Department revealed that the consumer price index (CPI), a broad measure of the price for everyday goods, including gasoline, groceries, and rents, rose 8.6% from a year ago in May. Those figures were higher than the 8.3% headline figure and 0.7% monthly gain forecast by Refinitiv economists. Prices jumped 1% in the one month from April.
Macro Trends Advisors LLC founding partner Mitch Roschelle warned inflation is forcing Americans to choose as prices hit a new four-decade high in May.
It marked the fastest pace of Inflation since December 1981.
Roschelle noted that the higher prices force Americans to “make choices.”
Shelter costs – roughly one-third of the CPI – accelerated in May, climbing 0.6%. It marked the fastest one-month gain since 2004. On an annual basis, shelter costs have risen 5.5%, the fastest since February 1991.
Energy prices rose 3.9% from the previous month in May and are up 34.6% from last year. Gasoline, on average, costs 48.7% more than it did one year ago and 7.8% more than it did in April. In all, fuel prices jumped 16.9% in May every month, pushing the one-year increase to a stunning 106.7%.
On Sunday, the national average for gas was $4.90, slightly lower than the day before and 30 cents higher than the month earlier, according to AAA.
According to the association, gas prices have been hitting records recently, with the national average above $5 a gallon two weeks ago.
Roschelle pointed out that “oil prices, whether diesel or gasoline, flow through virtually everything we consume.”
“Food on the table has to get from wherever it came, to the store that you bought it in or the restaurant that serves it,” he continued.
“If gasoline prices stayed the same or went up, and more importantly, if diesel prices go up, I think that will push inflation.”
Roschelle noted that he believes inflation will stick around for “a while.”
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“In fact, not only will it be a midterm election issue, it’s possible that once the potential presidential candidates hit the trails, start going to Iowa and New Hampshire, it’s probably going to be an issue then as well,” he continued.