In this week’s Recap, Marcello talks about how the German supermarket chain Rewe has warned customers can take only 1 “critical” product – such as pasta and flour; Consumer spending in the U.S. is the “worst in history,” which shows a clear sign of how inflation has affected the economy; Ethereum fell and is headed toward its lowest levels since May 12.
Inflation in the U.S. surged from a year ago. Groceries up +11.9%, chicken up +17.4%, restaurants up +9%, fuel up +107%. These are the largest year on year price hikes ever in the U.S. Moody’s Analytics claim that inflation is costing the average American an extra $460.00 per month. That is $5,520.00 more per year.
The U.S. Consumer Price Index (CPI) data indicates that the annual increase in domestic retail prices is now at +8.6%, the fastest increase since 1981. The cost of living jumped 1% in May, with higher rents, gas & food prices. Excluding volatile energy and food prices, so-called core CPI was up 6%, slightly higher than the 5.9% estimate.
The Biden administration announced Friday that it is ending a requirement as of Sunday, that international travelers test negative for the coronavirus before coming to the United States. The Centers for Disease Control & Prevention (CDC) has determined based on the present science & data, that this requirement is no longer necessary at this time.
U.S. banking investment giant JPMorgan analysts now expect gasoline could top out at a price of $6.20 per gallon by August in the U.S., but other analysts expect the peak price to stay closer to $5.25 per gallon, due to demand destruction as drivers will likely cut back on usage.
The European Central Bank confirms its intention to hike interest rates by 25 basis points at its July meeting, with a further increase expected in September, the scale of which will be determined by the medium-term inflation outlook. The central bank also raised its inflation expectations for the Eurozone significantly to +6.8% from +5.1% & downgraded its growth forecasts from +3.7% to just +2.8%.
Danish shipping giant, the largest container shipping line & vessel operator in the world from 1996 until 2021, AP Moeller-Maersk shares fell -8.92% on Wednesday, on concerns container rates will likely drop significantly, amid easing supply chain restrictions.
Tesla just filed its annual proxy statement with the U.S. SEC & revealed it plans a 3-for-1 stock split; Ukrainian officials were pleading for more aid from the West; The Bank of England looks set to raise interest rates next week for the 5th time since December; According to the U.S. Mortgage Bankers Association mortgage applications fell -6.5% from one week earlier in the week ending June 3.
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