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Good morning.

Just when everything appeared to be going well … boom!  An inflation report came out and investors ran for the exits (even if only temporarily) as focus once again centered on the upcoming Fed meeting.

Why was the report so unsettling?

In recent days there were many “experts” (harrumph!) claiming inflation to be getting under control and lowering the probability of a 75 bp (0.75%) Fed response.  In all likelihood, many of these opinion-setters saw prices dropping at the pump and figured we reached the peak in prices.  But maybe they traveled from home to gas station to office … never stepping foot in a grocery store … as food cost is where a big part of the problem is hardest to digest.

Yes, that is right … food … as grocery prices jumped 13.5% over the past twelve months.

It might not seem that way to some as companies got a bit cute and are not cutting price but, instead, are introducing smaller packages.  One example (in an article below) is Wendy’s … where a large Frosty (an admitted addiction) is now around 12.5% smaller in size than it was in the past … while keeping price the same.

A big question we grapple with is, of course, the future.

Do we sense prices will continue to march upward … or was the year-over-year increase a thing of the past, with more contained from here?  I think the latter … that the rate of increases has peaked … but this could be wishful thinking.

Heck, even the sport of golf … similar to food items … is facing some “shrinkflation.”

I was at an outing yesterday and realized the golf balls must be getting smaller, though still sell for the same price.

Every year as I age, I realize the golf balls don’t go as far.

They must have done something to the equipment.

Have a great day,

Joseph G. Witthohn, CFA
Vice President
Emerald Asset Management PA, LLC
610 Freedom Business Center Drive
King of Prussia, PA 19406
Direct: (610) 285-9905
cell: (856) 625-7915
wit@teamemerald.com
 #vaccinatetosave

 

A Look At The News | September 13, 2022

As of 10:31 AM today …

Inflation surprised to the upside in August … dashing hopes for a more moderate Fed response as higher prices still do not seem to be under control (CNBC)

https://www.cnbc.com/2022/09/13/inflation-rose-0point1percent-in-august-even-with-sharp-drop-in-gas-prices.html

… and you might not notice the sharp rise in food prices as packages could be a little smaller, getting some consumers might upset (SheFinds)

https://www.shefinds.com/collections/wendys-frosty-size-change-shrinkflation/

Do you have an upcoming job interview?  While you might think wearing a clean shirt is enough, there are other things to bring to this important discussion (USAToday)

https://www.usatoday.com/story/money/careers/job-interview-tips/2022/09/13/what-to-bring-to-a-job-interview/7954891001/

Some find it difficult to show affection … even toward dear friends … but, fortunately, there are ways to show your true feelings toward those close to you (NPR)

https://www.npr.org/2022/09/01/1120550646/how-to-show-your-friends-you-love-them-according-to-a-friendship-expert

Many of us recognize the ravage toll cancer brings into this world.  The Biden Administration claims lowering this is of tremendous importance in the years ahead (APNews)

https://apnews.com/article/biden-health-diagnostic-tests-john-f-kennedy-presidential-library-and-museum-government-politics-6bc8183548cd46545f4141cfa6fe4630

A lot has been written lately about U.S. “expats” going to Mexico … since working remotely is quite commonplace.  But what is the effect on Mexican citizens already living there? (Reuters)

https://www.reuters.com/world/americas/boon-or-threat-mexico-city-wrestles-with-influx-remote-us-workers-2022-09-13/

 

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The statements above are supplied for educational purposes only. The statements depict the viewpoints and opinion of the author and are not necessarily the views of Emerald Asset Management or its affiliates. The information described herein is taken from sources which are believed to be reliable, but the accuracy and completeness of such information is not guaranteed by us.