Central Markets by Robert Lloyd, CFA

The information contained herein has been obtained from sources believed to be reliable, but the accuracy of the  information cannot be guaranteed. All opinions and outlooks are subject to change.

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August Inflation Hovers Over 5%

Updated: Oct 7, 2021

August inflation did not go much higher as many expected. Why?

Yesterday, the BLS reported 5.3% year-over-year inflation and 3.3% 2-year inflation. It wasn't a total disaster, but it is still high and many expected worse numbers. What is missing?


The Bureau of Labor Statistics says urban inflation for housing was a measly 2.8% year-over-year last month. Does anyone believe that after looking at rent and housing prices this summer? It is likely these readings are going to slowly find their way into the inflation metrics and that the Fed's forecast of "transitory inflation" will prove NOT transitory. Shelter is one of the largest components of the CPI calculation and it is likely to contribute positively for several quarters.


We expect inflation readings to remain high, especially if another large stimulus program is approved by Congress.


Robert Lloyd, CFA®

Chief Investment Officer

Lloyds Intrepid Wealth Management

Lloyds Intrepid LLC is doing business as Lloyds Intrepid Wealth Management. Lloyds Intrepid LLC offers investment advisory services in the State of Texas where registered and in other jurisdictions where exempted. Registration does not imply a certain level of skill or training. Lloyds Intrepid LLC and its advisers do not provide legal, tax or accounting advice. Lloyds Intrepid LLC formulates retirement plans, investment strategies, portfolio construction and investment due diligence for clients with signed investment advisory agreements with us. The information contained herein has been obtained from sources believed to be reliable, but the accuracy of the information cannot be guaranteed. All opinions and outlooks are subject to change.


© 2021 Lloyds Intrepid LLC

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